Author Question: If the international price of oranges is less than the domestic price of oranges in Spain, then ... (Read 105 times)

LaDunn · **on:** Jun 30, 2018

If the international price of oranges is less than the domestic price of oranges in Spain, then Spain will export oranges to other countries.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 36 units of food per year or 18 units of clothing. Which of the following is true?
a. Iceland has both a comparative and absolute advantage in producing food.
b. Iceland has a comparative advantage, but not an absolute advantage in producing food.
c. Lavaland has both a comparative and absolute advantage in producing clothing.
d. Lavaland has an absolute advantage, but not a comparative advantage in producing clothing.