If the United States has an absolute advantage over the Netherlands in the production of tomatoes, then there is no reason for the United States to import tomatoes from the Netherlands. True false question.
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Exhibit 2-10 Costa Rica T-shirts 1000 500 Rice (tons) 500 1000 United States T-shirts 1000 500 Rice (tons) 500 1000 Refer to exhibit 2-10. The United States has an absolute advantage in bothe the production of T-shirts and rice. False True
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Which of the following statements is true? a. A country cannot have a comparative advantage in producing a certain item if it incurs an increasing opportunity cost in producing the item. b. A country cannot have a comparative advantage in producing a particular good unless it first has an absolute advantage in producing that good. c. All countries can gain from trade if they all specialize in production according to comparative advantage. d. Comparative advantage in producing a certain item arises from being the first country to manufacture that item.
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Which of the following statements regarding absolute and comparative advantage is true? A. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. B. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. C. A nation cannot have an absolute advantage in the production of every good. D. A nation cannot have a comparative advantage in the production of every good.
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