Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. If the exchange rate between apples and oranges in international markets is 1 ton of apples per 3 tons of oranges:
a. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export oranges to other countries.
b. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export apples to other countries.
c. Karl and Adam will trade apples and oranges with one another.
d. Karl and Adam will not specialize or engage in international trade.
Question 2
The oldest theory of comparative advantage is based on:
a. factor abundance.
b. productivity differences.
c. product life cycles.
d. preferences.
e. human skills.
Early in the twentieth century, when malnutrition was common, companies such as this one advertised
Tricyclic antidepressants produce their effects by inhibiting the reuptake of neurotransmitters ...
essay on friendship written by a 10-year-old
Apples Vs. Orange
The large, white flowers of giant saguaro cactus (Carnegiea gigantea) produce sweet nectar. The flow