Consider the Following Information About the Production of Two Goods

question 70

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. If the ratio Xa/Ya is less than the ratio Xb/Yb, then we can say with certainty that

• A) The opportunity cost of producing good X in Country A is less than in Country B.
• B) Country A has a comparative advantage in the production of good X.
• C) Country A has an absolute advantage in the production of good X.
• D) The opportunity cost of producing good X in Country A is higher than in Country B.
• E) Both A and B are correct.

Distinguish between various liabilities and enforcement provisions under the 1933 and 1934 Acts.

Identify exemptions and specific rules related to the registration and offering of securities.

Comprehend the role of the Securities and Exchange Commission (SEC) and its powers.

Understand the exemptions provided under the 1933 Act.

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Definitions:

Excess Demand

A situation in an economic market where the quantity demanded of a product exceeds the quantity supplied at the current price.

Good Increases

A situation where the supply, quality, or availability of beneficial or valuable products or commodities rises.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a given price over a specified period.

Product Price

The amount of money required to purchase a good or service, often determined by factors such as cost of production, market demand, and competition.