Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. We can say:
A. Country B now possesses the absolute advantage in the production of both goods.
B. Country B now possesses the absolute advantage in tablets only.
C. Country B now has the comparative advantage in iPod production.
D. Country B has no need to trade now.
A. Country B now possesses the absolute advantage in the production of both goods.
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Refer to Figure 10.1. The Nash equilibrium occurs on the ________ page, in the ________ cell
A) Contribute; upper-left B) Contribute; lower-right C) Don't Contribute; lower-right D) Don't Contribute; upper-left
Before the creation of the European Economic Community, there was the
A) European Economic Union. B) European Coal and Steel Community. C) European Union. D) European Free Trade Area. E) Single European Community.
The basic concepts used in the analytic framework of this text include all of the following EXCEPT
A) the not-for-profit nature of most financial institutions. B) a basic supply and demand analysis to explain the behavior of financial markets. C) an approach to financial structure based on transaction costs and asymmetric information. D) the concept of equilibrium.
The richest 10 percent of U.S. houses hold more than two-thirds of all wealth. The problem with this statement is that
A) it does not consider an individual's current income. B) it does not consider private and public pension plans. C) it is based entirely on nonhuman wealth. D) it is based entirely on human wealth.