Suppose Jamaica Has an Absolute Advantage Over Other Countries in Producing

question 21

Multiple Choice

Suppose Jamaica has an absolute advantage over other countries in producing sugar,but other countries have a comparative advantage over Jamaica in producing sugar.If trade in sugar is allowed,Jamaica

• A)will import sugar.
• B)will export sugar.
• C)will either import sugar or export sugar,but it is not clear from the given information.
• D)would have nothing to gain either from exporting or importing sugar.

---

Definitions:

Medicare Tax

A federal tax that funds Medicare, a health care program for individuals who are 65 years and older or meet other specific criteria, deducted from employee wages with an employer match.

Social Security Tax Rate

The rate at which income is taxed to fund the Social Security program, typically shared between employees and employers.

Medicare Tax Rate

The percentage of an individual's wages that is withheld or paid toward Medicare, a U.S. government health insurance program.

Net Pay

The amount of an employee's income after all deductions like taxes, insurance, and retirement contributions have been subtracted.