The Following Table Shows the Units of Output a Worker

question 193

Multiple Choice

The following table shows the units of output a worker can produce per month in country A and country B. Which of the following statements about absolute advantage is true?

• A)Country A has the absolute advantage in the production of food while country B has the absolute advantage in the production of electronics.
• B)Country A has the absolute advantage in the production of both food and electronics.
• C)Country B has the absolute advantage in the production of both food and electronics.
• D)All of these.

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Definitions:

Productive Land Resources

Land areas that are utilized or capable of being utilized for agricultural production, mining, or other economic activities.

Purely Competitive Economy

An economic model characterized by many buyers and sellers in the market, with none able to influence prices significantly.

Pure Rent

The income derived from the inherent attributes of a resource or property, exclusive of any improvement made by human effort.

Reproducible Resources

Resources that can be grown, naturally replenished, or reproduced to sustain their availability over time, unlike finite resources.