Suppose New Zealand Uses One Unit of Labor to Produce

question 4

Multiple Choice

Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:

• A) has a comparative advantage in producing apples.
• B) has a comparative advantage in producing kiwis.
• C) has a comparative advantage in producing both goods.
• D) does not have a comparative advantage in producing either good.

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Definitions:

Direction of Magnitude

The attribute of comparing two values or entities that indicates the relationship in terms of greater than, less than, or equal to.

Statistical Term

A term or concept used in the field of statistics to describe, analyze, and interpret data and its patterns.

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A disorder marked by the pursuit of extreme thinness and by an extreme loss of weight.

Ethical Concerns

Issues or situations that require careful consideration of principles of right and wrong behavior, often arising in professional, social, and research contexts.