Agnes Can Produce Either 1 Unit of X or 1

question 17

Multiple Choice

Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.

• A)Brenda has an absolute advantage in the production of X and Y.
• B)Brenda cannot gain from trade.
• C)Brenda has a comparative advantage in the production of X.
• D)Agnes has a comparative advantage in the production of Y.

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Definitions:

Bargaining Agent

An entity, often a union, authorized to negotiate employment terms on behalf of a group of employees.

Conciliation

Use of a government-appointed third party to explore solutions to a labour—management dispute.

Disciplinary Procedures

Formal processes followed by organizations to address employee behaviors that violate policies or standards, aiming at fairness and consistency.

Arbitration Cases

Legal disputes resolved outside of court by a neutral third party (arbitrator), whose decision is binding on the involved parties, often used in labor disputes.