Use the Following to Answer Question(s): the Production of Tires

question 83

Multiple Choice

Use the following to answer question(s) : The Production of Tires and Radios

-(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated.Further assume that the only input is labor and that it remains fully employed.Assume that there is unrestricted trade and complete specialization.According to comparative advantage, country:

• A) Y would import radios.
• B) Y would import tires.
• C) Y would export radios.
• D) X would export tires.