Asked by
vipul singh
on Oct 25, 2024
Verified
In a single year,the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Belgium can raise 50 tons of beef or produce 750 boxes of tulips.In autarky,the opportunity cost of beef:
A) is higher in the Netherlands than in Belgium.
B) is lower in the Netherlands than in Belgium.
C) is the same in the Netherlands as in Belgium.
D) cannot be determined in either country.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision or taking an action.
Autarky
A national economic policy aimed at self-sufficiency, avoiding the import of foreign goods.
Netherlands
A country located in Northwestern Europe known for its flat landscape, extensive canal systems, tulip fields, windmills, and cycling routes.
- Engage the concepts of comparative and absolute advantages in cross-border trade and their part in shaping the blueprint of trade networks.
Verified Answer
TD
Learning Objectives
- Engage the concepts of comparative and absolute advantages in cross-border trade and their part in shaping the blueprint of trade networks.