Multiple Choice
Use the information below to answer the following questions.
Fact 2.3.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Refer to Fact 2.3.2.Which one of the following statements is true?
A) Brenda has an absolute advantage over Agnes in the production of both goods.
B) Agnes has a comparative advantage in the production of Y.
C) Brenda has a comparative advantage in the production of X.
D) Brenda will not gain from trade.
E) Agnes will not gain from trade.
Correct Answer:

Verified
Correct Answer:
Verified
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