Exhibit 34-1 Refer to Exhibit 34-1

Exhibit 34-1 Refer to Exhibit 34-1. 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.