Consider the Following Information About the Production of Two Goods

question 41

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 an absolute advantage in producing good X if

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

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Definitions:

West Africa

A region in Africa bordered by the Atlantic Ocean to the west, encompassing countries like Nigeria, Ghana, and Senegal.

Olaudah Equiano

An African writer and abolitionist who lived during the 18th century, whose autobiography detailed his experiences as a slave and a free man.

Atypical Slave

Refers to enslaved individuals who lived under conditions or had experiences that differed from the typical circumstances of slavery, such as those who had specialized skills or attained unusual degrees of autonomy.

Middle Passage

The sea voyage that transported African slaves to the Americas, part of the transatlantic slave trade, notorious for its brutality and high mortality rate.