Limited access

Upgrade to access all content for this subject

New Zeal​and and Singapore can both produce either wool or computer chips. New Zealand's opportunity cost of one ton of wool is 97 computer chips. Singapore's opportunity cost of one ton of wool is 213 computer chips.

Based on this information, which of the following statements is/are true?

I. New Zealand has the comparative advantage in wool production
II. Singapore should specialize in computer chips
III. Both countries would benefit from trading one ton of wool for 145 computer chips.


I only


II only


I and II only


II and III only


I, II and III

Select an assignment template