Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product.This implies any one of the following except that
A)the two countries use different technologies to produce the product.
B)the inputs are not equally productive in the two countries.
C)the prices of the inputs are not the same in the countries.
D)one country is more efficient in the production of the good than the other.

Question

Quizplus · Accepted Answer

The fact that two countries use different combinations of inputs to produce the same product does not necessarily mean that one country is more efficient in production than the other. It could simply mean that they have different endowments of inputs or different factor prices. Efficiency in production depends on how much output can be produced from a given set of inputs and therefore cannot be determined solely based on the fact that different inputs are being used.

Suppose Two Countries Use Different Combinations of Inputs, Such as Labor