14) There are two countries A and B that can produce two products X and Y. The production possibility frontier for country A is given by 4X+7Y=100 while the production possibility frontier for country B is given by 7X+11Y=200. Which of the following is true? A) Country A has a comparative advantage in both products B) Country B has a comparative advantage in both products C) Neither country has comparative advantage in any product D) Both countries have comparative advantage in both products E) Country A has a comparative advantage in X; neither country has a comparative advantage in Y F) Country A has a comparative advantage in Y; neither country has a comparative advantage in X G) Country B has a comparative advantage in X; neither country has a comparative advantage in Y H) Country B has a comparative advantage in Y; neither country has a comparative advantage in X I) Country A has a comparative advantage in X; country B has a comparative advantage in Y G) Country A has a comparative advantage in Y; country A has a comparative advantage in Y

14) There are two countries A and B that can produce two products X and Y. The production possibility frontier for country A is given by 4X+7Y=100 while the production possibility frontier for country B is given by 7X+11Y=200. Which of the following is true? A) Country A has a comparative advantage in both products B) Country B has a comparative advantage in both products C) Neither country has comparative advantage in any product D) Both countries have comparative advantage in both products E) Country A has a comparative advantage in X; neither country has a comparative advantage in Y F) Country A has a comparative advantage in Y; neither country has a comparative advantage in X G) Country B has a comparative advantage in X; neither country has a comparative advantage in Y H) Country B has a comparative advantage in Y; neither country has a comparative advantage in X I) Country A has a comparative advantage in X; country B has a comparative advantage in Y G) Country A has a comparative advantage in Y; country A has a comparative advantage in Y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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