481) Suppose Countries A and B use only labour as an input and produce only cloth and wheat. In A, a worker in a day could produce 2 units of cloth or 4 units of wheat. In B, a worker in a day could produce 3 units of cloth or 9 units of wheat. At present the c
Answer is:
Country A has an absolute advantage in cloth.
Related Micro Economics MCQ (GK Set-1) with Answers
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Country A will export cloth to B, and import wheat from B, and each country will be able to consume more of both products than before
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If a worker in country D could produce more than 3 tents a week
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