Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. Which of the following statements is true? ProductivityCountry ACountry BGood X1.000.50Good Y0.200.70
A. Country B has an absolute advantage in the production of Good X.
B. Country A has an absolute advantage in the production of both Good X and Good Y.
C. Country B has an absolute advantage in the production of both Good X and Good Y.
D. Country A has an absolute advantage in the production of Good X.
Answer: D
You might also like to view...
The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 2.0 there is
A) dissavings of $3.0 trillion. B) dissavings of $1.0 trillion. C) savings of $1.0 trillion. D) savings of $3.0 trillion. E) dissavings of $5.0 trillion.
Per capita real GDP levels provide one possible measure of a country's standard of living
Indicate whether the statement is true or false
Use the concepts of reputation and asymmetric information to explain why some faculty members become less productive after gaining tenure.
What will be an ideal response?
Which equation is incorrect?
A. MV = GDP B. PQ = GDP C. MV = PQ D. 10M = 10P