If Wage in Country a Is $6/hour and in Country

question 22

Multiple Choice

If wage in country A is $6/hour and in country B is £2/hour,and the exchange rate between a $ and a £ is 1£=2$,then given the information in the table,which of the following is true? $\begin{array}{|l|c|c|}\hline & \text {Country A} &\text { Country B} \\\hline\text { Apple (bushels/hr) }& 8 & 1 \\\hline\text { Orange (bushels/hr) } & 2 & 3 \\\hline\end{array}$

• A)Country A has comparative advantage in apples
• B)Country A has comparative advantage in oranges
• C)Country B has comparative advantage in apples
• D)Country A and B both have comparative advantage in oranges

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Definitions:

Dividends

Disbursements from a company to its shareholders, customarily extracted from the company's net income.

Purchase Price

The amount paid to buy an asset or service, which can include the acquisition of goods, services, or property.

Selling Price

The amount of money for which a product or service is offered for sale to customers.

Standard Deviation

A statistical measure that represents the dispersion or variability of a set of data points or investment returns.