Suppose Russia Can Produce Either 600 Pianos or 400 HDTVs,and

question 128

Multiple Choice

Suppose Russia can produce either 600 pianos or 400 HDTVs,and Italy can produce either 300 pianos or 150 HDTVs.Implicitly,Russia has

• A)Both an absolute and a comparative advantage in HDTVs.
• B)A comparative but not necessarily an absolute advantage in HDTVs.
• C)An absolute but not necessarily a comparative advantage in HDTVs.
• D)Neither a comparative nor an absolute advantage in HDTVs.

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Definitions:

Best Use

Optimal allocation or application of resources to maximize efficiency or value.

Positive Statement

An objective statement based on factual information or data that can be tested or rejected through observation.

Normative Statement

A value-based statement that expresses an opinion about what ought to be rather than what is factual.

Oil Refineries

Facilities where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, and heating oil.