Refer to the Table Shown A Comparative Advantage in the Production of Gold Is Held

question 89

Multiple Choice

Refer to the table shown. $$\begin{array} {c } { \text { Batswana } } \quad\quad { \text { Zimbabwe } } \\\begin{array} { | c | c | c | c | } \hline \text { Gald } & \text { Nickel } & \text { Gold } & \text { Nickel } \\\hline 0 & 300 & 0 & 90 \\\hline 60 & 200 & 18 & 60 \\\hline 120 & 100 & 36 & 30 \\\hline 180 & 0 & 54 & 0 \\\hline\end{array}\end{array}$$ A comparative advantage in the production of gold is held by:

• A)Zimbabwe.
• B)Botswana.
• C)neither country.
• D)both countries.

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Definitions:

Purely Competitive Market

A theoretical market structure characterized by an infinate number of buyers and sellers, homogeneous products, and no barriers to entry or exit.

Consumer Surplus

The distinction between what consumers are willing and able to allocate financially for a good or service, and what they actually allocate.

Purely Competitive Market

A purely competitive market is characterized by many buyers and sellers, homogenous products, and no barriers to entry or exit, leading to price taking behavior by individuals.

Equilibrium

A state of balance where demand and supply in a market are equal, leading to a stable price.