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.There is no scope for gains from trade due to specialization between the two countries if

A) (X_a/Y_a) is greater than (X_b/Y_b) .
B) X_a is equal to Y_b.
C) (X_a/Y_a) is equal to (X_b/Y_b) .
D) X_a is less than Y_b and Y_a is less than Y_b.
E) X_a is less than X_b.