Given the Following Information, Does a Comparative Advantage Opportunity Exist

question 21

Multiple Choice

Given the following information, does a comparative advantage opportunity exist?

• A)Yes - both parties can pay less interest by borrowing where they have a comparative advantage and swapping their interest payments.
• B)Yes - the potential savings from entering a swap are 1 per cent.
• C)Yes -but a swap would reduce the cost of funds for B only.
• D)No.
• E)Cannot say with the available information.

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Definitions:

Epidermis

Found on the skin's surface, this layer serves as a moisture-resistant barrier and sets the skin's tone.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and other structures.

Blood Clot

Coagulated phase of blood.

Multipolar Neuron

One of three categories of neurons consisting of a neuron cell body, an axon, and two or more dendrites.