-Use the Above Table

question 254

Multiple Choice

-Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange

• A)is 2.5 gallons of wine for 1 pound of beef, and Argentina imports beef.
• B)4 gallons of wine for 1 pound of beef, and France imports beef.
• C)0.2 pound of beef for 1 gallon of wine, and Argentina imports wine.
• D)8 pounds of beef for 1 gallon of wine, and France imports wine.

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