Refer to the Graph Shown

question 94

Multiple Choice

Refer to the graph shown. If Countries X and Y face the production possibility curves A and B, respectively, Country X has a comparative advantage in the production of:

• A) neither agricultural goods nor industrial goods.
• B) both agricultural goods and industrial goods.
• C) agricultural goods only.
• D) industrial goods only.

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Definitions:

Plant Asset

Plant assets are long-term tangible assets that are used in the production or supply of goods and services, such as machinery, buildings, and vehicles.

Office Equipment

Tangible property (such as desks, chairs, computers, etc.) used in an office environment to perform work activities.

Patent

A legal right granted by a government authority to an inventor to exclude others from making, using, or selling an invention for a certain period of time.

Merchandise Inventory

Goods that a company has in stock and available for sale to customers.