Multiple Choice
Scenario: A shoe manufacturer has factories in two countries, Country X and Country Y. Shoe manufacturing involves two main tasks-designing the shoe and stitching it. The value added per hour in each activity by workers in the two countries is shown in the table below.
-Refer to the scenario above.Which of the following statements is true in this case?
A) The opportunity cost of designing shoes is lower in Country X.
B) The opportunity cost of stitching shoes is lower in Country X.
C) Country Y has an absolute advantage in stitching shoes.
D) Country Y has an absolute advantage in designing shoes.
Correct Answer:
Verified
Correct Answer:
Verified
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