Consider a Two-Country, Two-Commodity Model A)increase; 1
B)decrease; 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. If country A transfers 1 labor hour from the production of good Y to the production of good X, total world production of good X will _____ by _____ units. $$\begin{array} { | c | c | c | } \hline \text { Productivity } & \text { Country A } & \text { Courntry B } \\\hline \text { Good X } & 1.00 & 0.50 \\\hline \text { Good Y } & 0.20 & 0.70 \\\hline\end{array}$$

A) increase; 1
B) decrease; 1.43
C) increase; 0.5
D) decrease; 0.7