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.
Astronomers identified 12-billion-year-old white dwarf stars only 100 light years away from Earth
Japanese farmers create pentagon-shaped oranges
A model of anxiety in which stressful events or a changing mental condition can produce unfavorable
During my research in India, I interviewed this 8-year-old girl. Mahashury is a bonded laborer who ...
Available Fresh Water per year
No payments were made on a $2,598 loan during its three-year term. What was the annually ...