Cory Kline
New member
The nation of Waterland forbids international trade. In Waterland, you can obtain a computer by trading 2 bicycles. In other countries, you can obtain a computer by trading 3 bicycles. These facts indicate that
A. if Waterland were to allow trade, it would export computers.
B. Waterland has an absolute advantage, relative to other countries, in producing computers.
C. Waterland has a comparative advantage, relative to other countries, in producing bicycles.
D. All of the above are correct.
A. if Waterland were to allow trade, it would export computers.
B. Waterland has an absolute advantage, relative to other countries, in producing computers.
C. Waterland has a comparative advantage, relative to other countries, in producing bicycles.
D. All of the above are correct.