The Data Embodied in the Above Diagrams Suggest That

question 94

Multiple Choice

The data embodied in the above diagrams suggest that:

• A) Italy should export X and Greece should export Y.
• B) Greece should export X and Italy should export Y.
• C) Production in both countries is subject to increasing costs.
• D) Italy should import both X and Y from Greece. Italy has a comparative advantage in the production of product X because of its lower opportunity cost (1 vs.2),while Greece has a comparative advantage in the production of product Y because of its lower opportunity cost (½ vs.2).Therefore,Italy should export product X and Greece should export product Y.

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Definitions:

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Over-The-Counter Markets

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Chief Financial Officer

The executive responsible for managing a company's financial planning, risk management, and financial reporting.