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Consider the Following Information About the Production of Two Goods,X

Question 6

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Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes Xa units of resources to produce one unit of X and Ya units of resources
To produce one unit of Y.
• In Country B it takes Xb units of resources to produce one unit of X and Yb units of resources
To produce one unit of Y.
• Assume the amount of resources used to produce the goods in the two countries can be
Compared unambiguously.
TABLE 32-1
Refer to Table 32-1.If the ratio Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X<sub>a</sub> units of resources to produce one unit of X and Y<sub>a</sub> units of resources To produce one unit of Y. • In Country B it takes X<sub>b</sub> units of resources to produce one unit of X and Y<sub>b</sub> units of resources To produce one unit of Y. • Assume the amount of resources used to produce the goods in the two countries can be Compared unambiguously. TABLE 32-1 Refer to Table 32-1.If the ratio / is less than the ratio / ,then we can say with certainty that A) The opportunity cost of producing good Y in Country A is less than in Country B. B) Country A has a comparative advantage in the production of good X. C) Country A has an absolute advantage in the production of good X. D) The opportunity cost of producing good X in Country A is higher than in Country B. E) The opportunity cost of producing good X in Country A is lower than in Country B. / Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X<sub>a</sub> units of resources to produce one unit of X and Y<sub>a</sub> units of resources To produce one unit of Y. • In Country B it takes X<sub>b</sub> units of resources to produce one unit of X and Y<sub>b</sub> units of resources To produce one unit of Y. • Assume the amount of resources used to produce the goods in the two countries can be Compared unambiguously. TABLE 32-1 Refer to Table 32-1.If the ratio / is less than the ratio / ,then we can say with certainty that A) The opportunity cost of producing good Y in Country A is less than in Country B. B) Country A has a comparative advantage in the production of good X. C) Country A has an absolute advantage in the production of good X. D) The opportunity cost of producing good X in Country A is higher than in Country B. E) The opportunity cost of producing good X in Country A is lower than in Country B. is less than the ratio Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X<sub>a</sub> units of resources to produce one unit of X and Y<sub>a</sub> units of resources To produce one unit of Y. • In Country B it takes X<sub>b</sub> units of resources to produce one unit of X and Y<sub>b</sub> units of resources To produce one unit of Y. • Assume the amount of resources used to produce the goods in the two countries can be Compared unambiguously. TABLE 32-1 Refer to Table 32-1.If the ratio / is less than the ratio / ,then we can say with certainty that A) The opportunity cost of producing good Y in Country A is less than in Country B. B) Country A has a comparative advantage in the production of good X. C) Country A has an absolute advantage in the production of good X. D) The opportunity cost of producing good X in Country A is higher than in Country B. E) The opportunity cost of producing good X in Country A is lower than in Country B. / Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X<sub>a</sub> units of resources to produce one unit of X and Y<sub>a</sub> units of resources To produce one unit of Y. • In Country B it takes X<sub>b</sub> units of resources to produce one unit of X and Y<sub>b</sub> units of resources To produce one unit of Y. • Assume the amount of resources used to produce the goods in the two countries can be Compared unambiguously. TABLE 32-1 Refer to Table 32-1.If the ratio / is less than the ratio / ,then we can say with certainty that A) The opportunity cost of producing good Y in Country A is less than in Country B. B) Country A has a comparative advantage in the production of good X. C) Country A has an absolute advantage in the production of good X. D) The opportunity cost of producing good X in Country A is higher than in Country B. E) The opportunity cost of producing good X in Country A is lower than in Country B. ,then we can say with certainty that


A) The opportunity cost of producing good Y in Country A is less than in Country B.
B) Country A has a comparative advantage in the production of good X.
C) Country A has an absolute advantage in the production of good X.
D) The opportunity cost of producing good X in Country A is higher than in Country B.
E) The opportunity cost of producing good X in Country A is lower than in Country B.

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