A New Country Is Formed in Central Africa

question 115

Multiple Choice

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

• A) The new country should try to produce its own crude oil,diamonds,and wool.
• B) The new country has a comparative advantage in the production of bows and arrows.
• C) The new country has an unqualified advantage in the production of bows and arrows.
• D) The new country has a determined advantage in the production of arrows.
• E) The new country is engaged in dumping bows and arrows.