Maximum Feasible Hourly Production Rates of EitherProduct A or Product B Using All Available ResourcesProductCountry XCountry YA48B44 Refer to the above table. If opportunity costs are constant, each nation produces only the one good for which it has a comparative advantage, and trade can occur between the two countries

A. country X will produce product B and country Y will produce product A.
B. country Y will refuse to trade with country X since country Y has a comparative advantage in both products.
C. country X will produce product A and country Y will produce product B.
D. country X will refuse to trade with country Y since country X has a comparative advantage in both products.


Answer: A

Economics

You might also like to view...

The effects of a decrease in export demand

A) is a powerful argument in favor of fixed rates. B) is a powerful argument in favor of flexible rates. C) shows the difficulties in determining which exchange rate is better. D) is a powerful argument in favor of fixed rates only in the short run. E) is a powerful argument in favor of fixed rates only in the long run.

Economics

Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)

A) accounting identity. B) special draw. C) surplus item. D) deficit item.

Economics

Personal income in the United States is primarily determined by selling labor services

a. True b. False

Economics

An indifference curve consists of quantity combinations of two goods that yield:

a. equal marginal utilities. b. negative marginal utilities. c. the same price ratios. d. the same total satisfaction.

Economics