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.Country A has an absolute advantage in producing good X if
A) (Xa/Ya) is less than (Xb/Yb) .
B) Xa is less than Xb.
C) Xa is less than Ya.
D) (Xa/Xb) is less than (Ya/Yb) .
E) Xa = Xb.
Correct Answer:
Verified
Q35: Ireland and Japan are assumed to produce
Q36: Suppose Spain is currently producing 90 units
Q37: Ireland and Japan are assumed to produce
Q38: If Country A has a comparative advantage
Q39: Consider the possibility of trade between countries.When
Q41: The following production possibilities schedule shows the
Q42: The following production possibilities schedule shows the
Q43: The following production possibilities schedule shows the
Q44: Consider the following information about the production
Q45: The following production possibilities schedule shows the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents