Consider a Two-Country, Two-Commodity Model A)05
B)1

question 33

Multiple Choice

Consider a two-country, two-commodity model. The table given below shows the units of good X and good Y produced in country A and country B per labor hour. The number of labor hours required to produce 1 unit of good X in country A is: $$\begin{array} { | c | c | c | } \hline \text { Productivity } & \text { Country A } & \text { Country B } \\\hline \text { Good X } & 1.00 & 0.50 \\\hline \text { Good Y } & 0.20 & 0.70 \\\hline\end{array}$$

• A)0.5.
• B)1.
• C)1.43.
• D)2.

---

Definitions:

Worker Fatigue

Worker fatigue refers to the physical and mental exhaustion that can decrease employee performance, potentially leading to mistakes and accidents.

Misallocation

The inefficient distribution or use of resources in a manner that does not maximize efficiency or value.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity of materials supposed to be used, multiplied by the standard cost per unit.

Standard Quantity

The predetermined amount of materials or inputs that should be used in the production of goods or services under normal operating conditions.