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Suppose the United States' production possibility frontier was flatter to the widget axis, whereas G

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Suppose the United States' production possibility frontier was flatter to the widget axis, whereas G

Suppose the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that
A) the United States has a comparative advantage in butter.
B) the United States has no comparative advantage
C) Germany has lost its comparative advantage.
D) Germany has a comparative advantage in butter.
E) Germany has a comparative advantage in widgets.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 145 times

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Chako Author

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9 years ago

I doubted this website before I signed up. I regret not being a member earlier lol

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machukian

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9 years ago

Don't forget to vote my answer as best Nerd Face

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