Suppose That a Worker in Country a Can Produce Either

question 118

Multiple Choice

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Country B will benefit from trade if the country specializes in _____ because _____

• A) bananas; it has a comparative advantage at producing bananas.
• B) tomatoes; its opportunity cost of tomatoes is higher than that of Country A.
• C) tomatoes; its opportunity cost of tomatoes is lower than that of Country A.
• D) bananas; it has an absolute advantage at producing bananas.

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The extent to which the goals and aims of a project or task are clearly defined and understandable.

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Characteristics or features inherent to an organization, product, or process that are not outwardly visible.

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