Exhibit 33-4

-Refer to Exhibit 33-4. Country 1 has a comparative advantage in the production of __________, and country 2 has a comparative advantage in the production of __________.

Question

Exhibit 33-4
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-Refer to Exhibit 33-4. Country 1 has a comparative advantage in the production of __________, and country 2 has a comparative advantage in the production of __________.

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Without seeing Exhibit 33-4, the correct answer cannot be determined based on the information provided. However, typically, if a question is framed this way, it implies that each country has a comparative advantage in producing one of the goods, which aligns with choice A, where Country 1 has a comparative advantage in producing good A, and Country 2 has a comparative advantage in producing good B.

Exhibit 33-4 ​

Exhibit 33-4