Consider the Following Information About the Production of Two Goods

question 2

Multiple Choice

Consider the following information about the production of two goods, X and Y, in two countries, A and B:
∙ In Country A it takes Xa units of resources to produce one unit of X and Ya units of resources to produce one unit of Y.
∙ In Country B it takes Xb units of resources to produce one unit of X and Yb units of resources to produce one unit of Y.
∙ Assume the amount of resources used to produce the goods in the two countries can be compared unambiguously.
TABLE 32-1
-Refer to Table 32-1. Country A has a comparative advantage in producing good X if

• A) Xa/Ya) is less than Xb/Yb).
• B) Xa/Xb) is greater than Ya/Yb).
• C) Xa/Ya) is greater than Xb/Yb).
• D) Xa is less than Yb.
• E) Xa = Xb.

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Definitions:

Organizational Hierarchy

The arrangement of individuals within an organization according to power, status, and job function, forming a structure that outlines reporting relationships and work flow.

Span of Control

The number of subordinates directly managed by a supervisor or the extent of authority an individual manager has over a team.

Span of Control

Refers to the number of direct reports or subordinates that a manager or supervisor can effectively manage.

Organizational Size

The magnitude of an organization, typically measured by the number of employees, revenue size, or operational scale, impacting its structure and processes.