Author Question: Consider the following information about the production of two goods, X and Y, in two countries, A ... (Read 100 times)

urmomsucks · **on:** Oct 12, 2022

Consider the following information about the production of two goods, X and Y, in two countries, A and B:

In Country A it takes Xa units of resources to produce one unit of X and Ya units of resourcesto produce one unit of Y.
In Country B it takes Xb units of resources to produce one unit of X and Yb units of resourcesto produce one unit of Y.
Assume the amount of resources used to produce the goods in the two countries can becompared unambiguously.

TABLE 19-1

Refer to Table 19-1. If the ratio Xa/Ya is less than the ratio Xb/Yb, then we can say with certainty that

◦ Country A has a comparative advantage in the production of good X.
◦ The opportunity cost of producing good X in Country A is lower than in Country B.
◦ Country A has an absolute advantage in the production of good X.
◦ The opportunity cost of producing good X in Country A is higher than in Country B.
◦ The opportunity cost of producing good Y in Country A is less than in Country B.

Snabbey · **Reply #1 on:** Oct 12, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 35% of students answer this correctly