If Country a Can Produce Both Goods X and Y

question 195

Multiple Choice

If country A can produce both goods X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B,

• A) mutually advantageous specialization and trade between A and B may still be possible.
• B) we can conclude that A is an industrially advanced economy and B is a developing economy.
• C) it will necessarily be advantageous for B to import both X and Y from A.
• D) then there is no possible basis for mutually advantageous specialization and trade between A and B.

Recognize the influence of global trends on Canadian HR policies and practices.

Learn the sources of information for HR professionals and their reliability.

Understand the impact of the labour market on organizational strategy.

Apprehend the importance of timely information for competitive advantage.

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Definitions:

Government Spending

Expenditures by the government sector including spending on goods and services, public works, social services, and transfer payments.

Classical Economists

Economists of the 18th and 19th centuries who believed in free markets, minimal government intervention, and the self-regulating nature of economies.

Stable Economy

An economic condition characterized by predictability, low inflation, and minimal unemployment, indicating a healthy economic environment.

Say's Law

An economic theory proposing that supply creates its own demand, meaning production inherently creates the means to purchase other goods.