Question

Maximum Feasible Hourly Production Rates for Either

Food or Cloth Using All Available Resources

Food Cloth

United States 4 3

Mexico 12 6

Using the data in the above table and assuming constant opportunity costs, it is correct to state that

A)the United States has a comparative advantage in producing both food and cloth.

B)Mexico has a comparative advantage in producing food.

C)Mexico has a comparative advantage in producing both food and cloth.

D)the United States has an absolute advantage in producing cloth.

Question

Maximum Feasible Hourly Production Rates for Either

Food or Cloth Using All Available Resources

Food Cloth

United States 4 3

Mexico 12 6

Using the data in the above table, and assuming constant opportunity costs, it is likely that

A)the United States will export both cloth and food.

B)the United States will import food.

C)Mexico will export cloth.

D)Mexico will export both cloth and food.

Question

Maximum Feasible Hourly Production Rates for either Tablets or TVs Using All Available Resources Product United States Mexico Tablets TVSPrice Price 92 S2 51 X SI D D Quantity Quantity Panel A Panel B Price Price D2 51 S Da D D Quantity Quantity Panel C Panel DExports of goods 100 Net Unilateral Transfers -10 Imports of Services -50 Official Transactions -45 Capital Inflows 150 Imports of Goods -200 Exports of Services 125 Capital Outflows -70Exports of goods 50 Imports of goods -100 Exports of services 80 Imports of services -20 Net unilateral transfers -25 Financial account 15