Suppose That a Worker in Country a Can Make Either

question 127

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country B will benefit from trade if they:

• A) specialize in bananas because they have a comparative advantage in banana production.
• B) specialize in tomatoes because their opportunity cost of tomatoes is higher than Country A's.
• C) specialize in tomatoes because their opportunity cost of tomatoes is lower than Country A's.
• D) specialize in bananas because they have an absolute advantage in banana production.