Suppose There Are Only 2 Nations a and B,and Only

question 142

Multiple Choice

Suppose there are only 2 nations A and B,and only two goods,x and y.If nation A produces only x,it can make 20x per day.If nation A produces only y,it can make 15y per day.If nation B produces only x,it can make 15x per day.If nation B produces only y,it can make 15y per day.After trade begins nation ________ will specialize in the production of x and nation ________ will specialize in the production of y.

• A)A;A
• B)A;B
• C)B;B
• D)B;A

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Definitions:

Relevant Information

Data that can influence a decision-making process because it is pertinent and has a bearing on the situation.

Actual Results

The real outcomes achieved by an organization, which can be measured and compared against its goals or forecasts.

Planned Activities

Predefined actions or strategies set by an organization in pursuit of its objectives.

Accounting Period

A specific and standard duration of time (such as a month, quarter, or year) during which accounting records are kept and financial statements are prepared.