Question :
21.Acountryhasacomparativeadvantageinaproductiftheworldpriceis
a.lowerthanthatcountry’sdomesticpricewithouttrade.
b.higherthanthatcountry’sdomesticpricewithouttrade.
: 1262642
21.Acountryhasacomparativeadvantageinaproductiftheworldpriceis
a.lowerthanthatcountry’sdomesticpricewithouttrade.
b.higherthanthatcountry’sdomesticpricewithouttrade.
c.equaltothatcountry’sdomesticpricewithouttrade.
d.notsubjecttomanipulationbyorganizationsthatgoverninternationaltrade.
22.SupposeBrazilhasanabsoluteadvantageoverothercountriesinproducingalmonds,butothercountrieshaveacomparativeadvantageoverBrazilinproducingalmonds.Iftradeinalmondsisallowed,Brazil
a.willimportalmonds.
b.willexportalmonds.
c.willeitherimportalmondsorexportalmonds,butitisnotclearfromthegiveninformation.
d.wouldhavenothingtogaineitherfromexportingorimportingalmonds.
23.SupposeBrazilhasacomparativeadvantageoverothercountriesinproducingalmonds,butothercountrieshaveanabsoluteadvantageoverBrazilinproducingalmonds.Iftradeinalmondsisallowed,Brazil
a.willimportalmonds.
b.willexportalmonds.
c.willeitherimportalmondsorexportalmonds,butitisnotclearfromthegiveninformation.
d.wouldhavenothingtogaineitherfromexportingorimportingalmonds.
24.SupposeJamaicahasanabsoluteadvantageoverothercountriesinproducingsugar,butothercountrieshaveacomparativeadvantageoverJamaicainproducingsugar.Iftradeinsugarisallowed,Jamaica
a.willimportsugar.
b.willexportsugar.
c.willeitherimportsugarorexportsugar,butitisnotclearfromthegiveninformation.
d.wouldhavenothingtogaineitherfromexportingorimportingsugar.
25.Assume,forJapan,thatthedomesticpriceofautomobileswithoutinternationaltradeislowerthantheworldpriceofautomobiles.Thissuggeststhat,intheproductionofautomobiles,
a.JapanhasacomparativeadvantageoverothercountriesandJapanwillimportautomobiles.
b.JapanhasacomparativeadvantageoverothercountriesandJapanwillexportautomobiles.
c.othercountrieshaveacomparativeadvantageoverJapanandJapanwillimportautomobiles.
d.othercountrieshaveacomparativeadvantageoverJapanandJapanwillexportautomobiles.
26.Assume,forMexico,thatthedomesticpriceofbeetswithoutinternationaltradeishigherthantheworldpriceofbeets.Thissuggeststhat,intheproductionofbeets,
a.MexicohasacomparativeadvantageoverothercountriesandMexicowillexportbeets.
b.MexicohasacomparativeadvantageoverothercountriesandMexicowillimportbeets.
c.othercountrieshaveacomparativeadvantageoverMexicoandMexicowillexportbeets.
d.othercountrieshaveacomparativeadvantageoverMexicoandMexicowillimportbeets.
27.Assume,forEngland,thatthedomesticpriceofwinewithoutinternationaltradeishigherthantheworldpriceofwine.Thissuggeststhat,intheproductionofwine,
a.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillexportwine.
b.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillimportwine.
c.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillexportwine.
d.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillimportwine.
28.Assume,forEngland,thatthedomesticpriceofwinewithoutinternationaltradeislowerthantheworldpriceofwine.Thissuggeststhat,intheproductionofwine,
a.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillexportwine.
b.EnglandhasacomparativeadvantageoverothercountriesandEnglandwillimportwine.
c.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillexportwine.
d.othercountrieshaveacomparativeadvantageoverEnglandandEnglandwillimportwine.
29.IftheworldpriceofcoffeeislowerthanColombia’sdomesticpriceofcoffeewithouttrade,thenColombia
a.shouldimportcoffee.
b.hasacomparativeadvantageincoffee.
c.shouldproducejustenoughcoffeetosatisfydomesticdemand.
d.shouldproducenocoffeedomestically.
30.IftheworldpriceofcoffeeishigherthanColombia’sdomesticpriceofcoffeewithouttrade,thenColombia
a.shouldimportcoffee.
b.hasacomparativeadvantageincoffeeandshouldexportcoffee.
c.shouldproducejustenoughcoffeetosatisfydomesticdemand.
d.shouldproducenocoffeedomestically.