Most theories of comparative advantage explain trade patterns due ...

[frankwu]

Most theories of comparative advantage explain trade patterns due to international differences in
 
  A) demand conditions.
  B) supply conditions.
  C) demand and supply conditions.
  D) tariffs.

Question 2

Suppose the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that
 
  A) the United States has no comparative advantage
  B) Germany has a comparative advantage in butter.
  C) the United States has a comparative advantage in butter.
  D) Germany has a comparative advantage in widgets.
  E) Germany has lost its comparative advantage.

[zhanghao]

Answer to Question 1

B

Answer to Question 2

B

[frankwu]

Excellent

[mammy1697]

Thanks for the timely response, appreciate it