MCQOPTIONS
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MCQOPTIONS
| 1. |
Suppose the world consists of two countries: the UK and Spain. Further, suppose there are only two goods--food and clothing. Which of the following statements is true? |
| A. | If the UK has an absolute advantage in the production of food, then Spain must have an absolute advantage in the production of clothing. |
| B. | If the UK has a comparative advantage in the production of food, Spain might also have a comparative advantage in the production of food. |
| C. | If the UK has a comparative advantage in the production of food, it must also have a comparative advantage in the production of clothing |
| D. | If the UK has a comparative advantage in the production of food, then Spain must have a comparative advantage in the production of clothing |
| Answer» E. | |