Author Question: John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day ... (Read 215 times)

Coya19@aol.com · **on:** Jun 29, 2018

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

A) John has an absolute advantage in pizza.
B) Allen cannot benefit from trade with John.
C) John has a comparative advantage in pizza.
D) John cannot benefit from trade with Allen.
E) Allen has a comparative advantage in pizza.

Question 2

If the U.S. government enters the foreign exchange market and purchases dollars to maintain a specific exchange rate with the yen, the dollar will ________ and the yen will ________.

A) depreciate; depreciate B) depreciate; appreciate
C) appreciate; depreciate D) appreciate; appreciate