Limited access

Upgrade to access all content for this subject

Suppose America and England are trading partners. America can produce either 10 phones or 5 tablets. England can produce either 9 phones or 3 tablets.

Which of the following is true regarding trade between America and England?

A

England has an absolute advantage in producing both phones and tablets.

B

America’s opportunity cost of producing a tablet is 2 phones and they should import tablets.

C

England has an absolute advantage in phones and should import tablets.

D

America should produce tablets and import phones.

E

The opportunity cost of producing a tablet for England is 3 phones and they should export tablets.

Select an assignment template