Consider a Two-Country, Two-Commodity Model A)05
B)1

Multiple Choice

Consider a two-country, two-commodity model. The table given below shows the units of good X and good Y produced in country A and country B per labor hour. The number of labor hours required to produce 1 unit of good Y in country B is: $$\begin{array} { | c | c | c | } \hline \text { Productivity } & \text { Country A } & \text { Country B } \\\hline \text { Good X } & 1.00 & 0.50 \\\hline \text { Good Y } & 0.20 & 0.70 \\\hline\end{array}$$

A) 0.5.
B) 1.
C) 1.43.
D) 2.