QUESTION 24 Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16 computers per unit of labour. How does the concept of absolute advantage best apply to these countries? A. Country X should focus on producing computers, as it has an absolute advantage in car production. B. Country Y should specialize in producing cars, as it has an absolute advantage in car production. c. Both countries should produce cars and computers in equal proportions to maximize efficiency. D. Both countries should adopt protectionist policies to maintain domestic production levels.
QUESTION 24 Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16 computers per unit of labour. How does the concept of absolute advantage best apply to these countries? A. Country X should focus on producing computers, as it has an absolute advantage in car production. B. Country Y should specialize in producing cars, as it has an absolute advantage in car production. c. Both countries should produce cars and computers in equal proportions to maximize efficiency. D. Both countries should adopt protectionist policies to maintain domestic production levels.
Chapter1: Making Economics Decisions
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