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

Economics

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