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Use the Following Table Showing Production Possibilities for Herbs and Cosmetics

Question 57

Multiple Choice

Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.
Use the following table showing production possibilities for herbs and cosmetics from one unit of resources in Country J and one unit of resources in Country K.    -Suppose that the combined output from both countries is 100 pounds of herbs and 60 pounds of cosmetics when each country uses two units of resources. From this it can be concluded that: A)  each country is specializing in a way that takes advantage of its comparative advantage. B)  each country is specializing, but not in a way that takes advantage of its comparative advantage. C)  Country J is specializing in the production of herbs and Country K is producing both herbs and cosmetics. D)  Country K is specializing in the production of herbs and Country J is producing both herbs and cosmetics.
-Suppose that the combined output from both countries is 100 pounds of herbs and 60 pounds of cosmetics when each country uses two units of resources. From this it can be concluded that:


A) each country is specializing in a way that takes advantage of its comparative advantage.
B) each country is specializing, but not in a way that takes advantage of its comparative advantage.
C) Country J is specializing in the production of herbs and Country K is producing both herbs and cosmetics.
D) Country K is specializing in the production of herbs and Country J is producing both herbs and cosmetics.

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