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Consider a Two-Country, Two-Commodity Model A)neither Good X nor Good Y

Question 48

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. Country B has an absolute advantage in the production of:  Productivity  Country A  Country B  Good X 1.000.50 Good Y 0.200.70\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) neither good X nor good Y.
B) both good X and good Y.
C) only good X.
D) only good Y.

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