Exhibit 33-1
-Refer to Exhibit 33-1. If country A is to specialize in the production of one of the two goods (and then trade that good with Country B) , which good should it be and why? If Country B is to specialize in the production of one of the two goods (and then trade that good to with Country A) , which good should it be and why?
A) Good X for Country A because it is the higher opportunity cost producer of good X; good Y for Country B because it is the higher opportunity cost producer of good Y.
B) Good Y for Country A because it is the lower opportunity cost producer of good Y; good X for Country B because it is the lower opportunity cost producer of good X.
C) Good X for Country A because it is the lower opportunity cost producer of good X; good Y for Country B because it is the lower opportunity cost producer of good Y.
D) Good Y for Country A because it is the higher opportunity cost producer of good Y; good X for Country B because it is the higher opportunity cost producer of good X.
Correct Answer:
Verified
Q25: The ability to produce a good at
Q29: The national defense argument for trade restriction
Q32: Exhibit 33-1 Q32: "New industries need to be protected or Q33: Exhibit 33-1 Q34: Exhibit 33-1 Q38: The difference between the amount a seller Q39: Exhibit 33-1 Q40: One country has a comparative advantage over Q41: Exhibit 33-2 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
