Figure 9-2
The figure illustrates the market for calculators in a country.
-Refer to Figure 9-2.This country
A)has a comparative advantage in calculators.
B)should export calculators.
C)is a price taker in the world economy.
D)All of the above are correct.

Question

Figure 9-2
The figure illustrates the market for calculators in a country. 
-Refer to Figure 9-2.This country
A)has a comparative advantage in calculators. 
B)should export calculators. 
C)is a price taker in the world economy. 
D)All of the above are correct.

Quizplus · Accepted Answer

The country in the figure has a comparative advantage in producing calculators as it has a lower opportunity cost compared to other countries. Therefore, it should export calculators to take advantage of its comparative advantage in the global market. Additionally, since the country is small in comparison to the world economy, it is a price taker and cannot influence the global price of calculators. Therefore, all of the above options are correct.

Figure 9-2 The Figure Illustrates the Market for Calculators in a Country