Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products.
B) Lucy has a comparative advantage in making tricycles and James in making wagons.
C) James has a comparative advantage in making both products.
D) Lucy has a comparative advantage in making wagons and James in making tricycles.
Question 2
If there is currently a shortage of dollars, which of the following would you expect to see in the foreign exchange market?
A) The dollar will appreciate.
B) There will be an increase in the supply of dollars.
C) There will be an increase in the demand for dollars.
D) The dollar will depreciate.
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