Suppose Country Zoravia Can Produce 1 Unit of Good X

question 15

Multiple Choice

Suppose country Zoravia can produce 1 unit of good X every 2 hours and 1 unit of good Y every 30 minutes. Another country Alaine needs an hour each to produce 1 unit of X and 1 unit of Y. Which of the following statements must be true?

• A) Alaine is more productive in the production of both goods X and Y.
• B) Zoravia has a lower opportunity cost in the production of good Y.
• C) Alaine has to give up 4 units of Y to produce 1 unit of X.
• D) Zoravia has no comparative advantage in the production of either good.

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