Solved

The Hypothetical Nations Wat and Xat Have the Production Possibilities

Question 282

Multiple Choice

                      Wat’s Production Possibilities  Product ABCDEF Rice 7506004503001500 Corn 050100150200250                                  Xat’s Production Possibilities  Product ABCDEF Rice 2,5002,0001,5001,0005000 Corn 0100200300400500\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~~~~\text { Wat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 750 & 600 & 450 & 300 & 150 & 0 \\\hline \text { Corn } & 0 & 50 & 100 & 150 & 200 & 250 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Xat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 2,500 & 2,000 & 1,500 & 1,000 & 500 & 0 \\\hline \text { Corn } & 0 & 100 & 200 & 300 & 400 & 500 \\\hline\end{array}\end{array} The hypothetical nations Wat and Xat have the production possibilities for rice and corn given in the accompanying tables. Which of the following statements about the two nations is correct based on
The principle of comparative advantage?


A) Xat should specialize in the production of corn.
B) Wat should specialize in the production of rice.
C) Xat has a comparative advantage in the production of rice.
D) Xat has a comparative advantage in the production of corn.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions