Suppose That a Worker in Country a Can Make Either

question 75

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Which of the following is true?

• A) Country B should produce iPads and Country A should produce iPhones, and they could both benefit from trade.
• B) Country B should produce iPhones and Country A should produce iPads, and they could both benefit from trade.
• C) Neither country would benefit from trade because there is no comparative advantage at producing these goods.
• D) Because Country B has an absolute advantage at producing iPads, it should specialize in their production.

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Definitions:

Healthcare Profession

Careers dedicated to protecting, promoting, and improving individuals' health and well-being.

Volunteer Program

An organized effort to offer services or support, often without financial compensation, by individuals or groups to benefit a community or cause.

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The skills and knowledge attained for both personal development and career advancement.

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The process of improving oneself through activities that enhance personal awareness, develop talents and potential, and improve the quality of life.