Use the following to answer questions:
Figure: Countries A and B
-(Figure: Countries A and B) Refer to the figure regarding countries A and B. If both countries fully allocate all of their labor toward the good in which they have a comparative advantage, the combined production for the two countries would be _______ units of Good X, and _______ units of Good Y.
A) 100; 80
B) 70; 90
C) 40; 100
D) 100; 100

Question

Use the following to answer questions:
Figure: Countries A and B 
-(Figure: Countries A and B) Refer to the figure regarding countries A and B. If both countries fully allocate all of their labor toward the good in which they have a comparative advantage, the combined production for the two countries would be _______ units of Good X, and _______ units of Good Y.
A) 100; 80 
B) 70; 90 
C) 40; 100 
D) 100; 100

Quizplus · Accepted Answer

Country A has a comparative advantage in producing Good X, and Country B has a comparative advantage in producing Good Y. If both countries fully allocate all of their labor toward the good in which they have a comparative advantage, the combined production for the two countries would be 100 units of Good X and 80 units of Good Y.

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