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43) From the figures we can conclude A) that country A has an absolute advantage in the production of x only. B) that country A has an absolute advantage in the production of y only. C) that country A has an absolute advantage in the production of neither good. D) that country A has an absolute advantage in the production of both goods. E) nothing with respect to absolute advantage without more information regarding resource levels in the two countries

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Deanna Hettinger
Deanna HettingerLv2
30 Jul 2018
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Related questions

If there are two goods and two countries, then one country can have

a. an absolute advantage in both goods but a comparative advantage in only one good.

b. an absolute advantage in both goods and a comparative advantage in both goods.

c. an absolute advantage in neither good and a comparative advantage in both goods.

d. an absolute advantage in one good, an absolute disadvantage in the other good, and a comparative advantage in neither.

The figure below shows the production possibilities frontiers for Luxembourg and Thailand. Each country produces two goods, chairs and HDTVs. Assume both countries have the same resources. Luxembourg Thailand Chairs Chain HDTV HDTV a) (2 points) Which country has an absolute advantage in the production of chairs? Which country has an absolute advantage in the production of HDTVs? Explain your choices.

40) Consider two countries that can produce rice and other products. If neither country has an absolute advantage in the production of rice, A) there is no possibility that either country will import rice from the other. B) neither country can possibly have a comparative advantage in the production of rice. C) rice will still be traded as long as one of the countries has a comparative advantage in its production. D) the opportunity cost of producing rice must be identical in the two countries. E) then rice should not be produced.

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