Economics Homework Help

6. Which of the following statements is (are) correct?

(x) Comparative advantage is determined by which

person can produce a good using fewer inputs.

(y) Imports are goods produced abroad and sold domestically and exports are goods produced domestically

and sold abroad.

(z) If a country does not have a comparative advantage in the production of shoes then that country should

import shoes.

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (z) only

7. The producer that can produce a product with a lower opportunity cost

(x) has a comparative advantage in the production of that good.

(y) may not have an absolute advantage in the production of that good.

(z) should specialize in the production of that product and export that product.

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (x) only