Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product.This implies all 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 than the other in the production of the good. It may simply mean that the countries have different factor endowments or technology levels, leading to different input combinations. Therefore, option D is the exception, as it implies a direct relationship between input combinations and efficiency, which may not always hold true. Options A, B, and C are all possible outcomes that can arise from such a situation.

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