For country Gamma the opportunity cost for producing 1 computer is 10 tons of steel. For country Beta the opportunity cost for producing 1 computer is 6 tons of steel. Which country has the comparative advantage in the production of steel?
A) Beta
B) Gamma
C) Both have the comparative advantage in the production of steel.
D) Neither country has the comparative advantage in the production of steel.
E) More information is needed to determine which of the two nations has the comparative advantage.
Question 2
During the year a country's income was 6.0 trillion and its consumption was 5.5 trillion. At the start of the year its wealth was 30.0 trillion. The country's wealth at the end of the year was
A) 36.0 trillion. B) 35.5 trillion. C) 30.0 trillion. D) 6.0 trillion. E) 30.5 trillion.
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