Answer the question(s)below based on the information in the following table
Country
$$\begin{array} { | c | c | c | }
\hline \text { Goods } & \mathrm { A } & \mathrm { B } \
\hline \mathrm { X } & 3 & 9 \
\hline \mathrm { Y } & 4 & 2 \
\hline
\end{array}$$ (numbers indicate hours of labor per unit of output)
-Refer to the table above.If countries were to trade along the lines of comparative advantage
A)B would export Y to A.
B)A would import X from A.
C)neither country would want to trade.
D)More information is needed to determine the pattern.

Question

Answer the question(s)below based on the information in the following table
Country
 $$\begin{array} { | c | c | c | } 
\hline \text { Goods } & \mathrm { A } & \mathrm { B } \
\hline \mathrm { X } & 3 & 9 \
\hline \mathrm { Y } & 4 & 2 \
\hline
\end{array}$$ (numbers indicate hours of labor per unit of output)
-Refer to the table above.If countries were to trade along the lines of comparative advantage
A)B would export Y to A.
B)A would import X from A.
C)neither country would want to trade.
D)More information is needed to determine the pattern.

Quizplus · Accepted Answer

Country B has a comparative advantage in producing Y (requiring only 2 hours of labor per unit compared to 4 hours in Country A), so it would export Y to Country A. Comparative advantage is determined by the lower opportunity cost of production.

Answer the Question(s)below Based on the Information in the Following