Exploring Economics
Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
Question
If Italy is said to have an absolute advantage over the United States in the production of wheat, this means that, given the
same resources,
the United States must have a comparative advantage over Italy in the production of wheat.
Italy must have an absolute advantage over the United States in producing all goods.
the United States must have an absolute advantage in producing some good other than wheat.
Italy can produce more wheat than the United States.
Italy has an absolute advantage in all goods that are complements to wheat.
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Transcribed Image Text:If Italy is said to have an absolute advantage over the United States in the production of wheat, this means that, given the same resources, the United States must have a comparative advantage over Italy in the production of wheat. Italy must have an absolute advantage over the United States in producing all goods. the United States must have an absolute advantage in producing some good other than wheat. Italy can produce more wheat than the United States. Italy has an absolute advantage in all goods that are complements to wheat.
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