Consider the Following Information About the Production of Two Goods,X

Multiple Choice

Consider the following information about the production of two goods,X and Y,in two countries,A and B: • In Country A it takes X_a units of resources to produce one unit of X and Y_a units of resources
To produce one unit of Y.
• In Country B it takes X_b units of resources to produce one unit of X and Y_b units of resources
To produce one unit of Y.
• Assume the amount of resources used to produce the goods in the two countries can be
Compared unambiguously.
TABLE 32-1
Refer to Table 32-1.If the ratio / is less than the ratio / ,then we can say with certainty that

A) The opportunity cost of producing good Y in Country A is less than in Country B.
B) Country A has a comparative advantage in the production of good X.
C) Country A has an absolute advantage in the production of good X.
D) The opportunity cost of producing good X in Country A is higher than in Country B.
E) The opportunity cost of producing good X in Country A is lower than in Country B.