Solved

Table 16.5 Table 16.5 Shows the Labor Input Required to Required

Question 32

Multiple Choice

Table 16.5
Table 16.5    Table 16.5 shows the labor input required to produce a fixed quantity of product A and a fixed quantity of product B in each of two countries. -In Table 16.5, if trade is allowed between the two countries A)  country X will produce product A and country Y will produce product B. B)  country X will produce product B and country Y will produce product A. C)  country X will refuse to trade with country Y since country X has an absolute advantage. D)  country Y will refuse to trade with country X since country Y has an absolute advantage. Table 16.5 shows the labor input required to produce a fixed quantity of product A and a fixed quantity of product B in each of two countries.
-In Table 16.5, if trade is allowed between the two countries


A) country X will produce product A and country Y will produce product B.
B) country X will produce product B and country Y will produce product A.
C) country X will refuse to trade with country Y since country X has an absolute advantage.
D) country Y will refuse to trade with country X since country Y has an absolute advantage.

Correct Answer:

verifed

Verified

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

Related Questions