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Consider Two Countries, Labeled 1 and 2 >\gt A2:
A) Country 2 Will Not Produce Anything, Ceteris Paribus

Question 62

Multiple Choice

Consider two countries, labeled 1 and 2. Each has the production function  Consider two countries, labeled 1 and 2. Each has the production function   , = 1, 2. If the only difference between the two countries is that A<sub>1</sub>  \gt  A<sub>2</sub>: A)  Country 2 will not produce anything, ceteris paribus. B)  Country 2 will produce more than Country 1, ceteris paribus. C)  Country 1 will produce more than Country 2, ceteris paribus. D)  each will produce the same amount, ceteris paribus. E)  Not enough information is given. , = 1, 2. If the only difference between the two countries is that A1 >\gt A2:


A) Country 2 will not produce anything, ceteris paribus.
B) Country 2 will produce more than Country 1, ceteris paribus.
C) Country 1 will produce more than Country 2, ceteris paribus.
D) each will produce the same amount, ceteris paribus.
E) Not enough information is given.

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