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_a units of resources to produce one unit of X and Y_a units of resources
To produce one unit of Y.
• In Country B it takes X_b units of resources to produce one unit of X and Y_b 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 is less than ,we can conclude with certainty that

Question

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_a units of resources to produce one unit of X and Y_a units of resources
To produce one unit of Y.
• In Country B it takes X_b units of resources to produce one unit of X and Y_b 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

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 is less than ,we can conclude with certainty that A) the opportunity cost of producing good X 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 price of good X in Country A is less than the price in Country B. E) the opportunity cost of producing good X in Country A is higher than in Country B.

is less than

,we can conclude with certainty that

Quizplus · Accepted Answer

The Answer of 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_a units of resources to produce one unit of X and Y_a units of resources To produce one unit of Y. • In Country B it takes X_b units of resources to produce one unit of X and Y_b 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 is less than ,we can conclude with certainty that

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