One region has an absolute advantage over another region in the production of good X when... a. The first region has a larger supply of the raw materials required to produce good X. b. An equal quantity of resources can produce more of good X in the first region than in the second region. c. The opportunity cost of one unit of X is lower in the first region than in the second region. d. The first region has a more productive labour force than the second. e.
One region has an absolute advantage over another region in the production of good X when... a. The first region has a larger supply of the raw materials required to produce good X. b. An equal quantity of resources can produce more of good X in the first region than in the second region. c. The opportunity cost of one unit of X is lower in the first region than in the second region. d. The first region has a more productive labour force than the second. e.
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 6P
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Q82
One region has an absolute advantage over another region in the production of good X when...
a.
The first region has a larger supply of the raw materials required to produce good X.
b.
An equal quantity of resources can produce more of good X in the first region than in the second region.
c.
The opportunity cost of one unit of X is lower in the first region than in the second region.
d.
The first region has a more productive labour force than the second.
e.
There is no demand for good X in the second region
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