Jamaica has a comparative advantage in the production of aluminum,but currently allows no international trade in aluminum.We can conclude that
A)the domestic price of aluminum in Jamaica is higher than the world price for aluminum.
B)Jamaica has an absolute advantage in the production of aluminum.
C)Jamaica should import aluminum.
D)the domestic price of aluminum in Jamaica is lower than the world price for aluminum.

Question

Jamaica has a comparative advantage in the production of aluminum,but currently allows no international trade in aluminum.We can conclude that
A)​the domestic price of aluminum in Jamaica is higher than the world price for aluminum.
B)​Jamaica has an absolute advantage in the production of aluminum.
C)​Jamaica should import aluminum.
D)​the domestic price of aluminum in Jamaica is lower than the world price for aluminum.

Quizplus · Accepted Answer

A comparative advantage implies that Jamaica can produce aluminum at a lower opportunity cost than other countries, suggesting that the domestic price is lower than the world price.

Jamaica Has a Comparative Advantage in the Production of Aluminum,but