Assume that Australia has a comparative advantage in producing ...

[mwit1967]

Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
 
  A) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
  B) Labor costs are higher for surfboard producers in New Zealand than in Australia.
  C) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
  D) Australia also has an absolute advantage in producing surfboards relative to New Zealand.

Question 2

Refer to Figure 5-13. The actual price of gasoline paid by consumers after the tax is implemented is ________ per gallon.
 
  A) 3.00 B) 3.75 C) 4.25 D) 5.00

[essyface1]

Answer to Question 1

C

Answer to Question 2

D

[mwit1967]

Thanks for the timely response, appreciate it

[bbburns21]

YES! Correct, THANKS for helping me on my review