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.

---

Definitions:

Expected to Pay

The projected or planned amount to be paid out, often in context with liabilities or settlements.

EPS Growth Rate

The EPS (Earnings Per Share) Growth Rate measures the rate at which a company's earnings per share has grown over a specific period, indicating its profitability trend.

Rate of Return

The percentage gain or loss on an investment over a specified time period, relative to the investment's initial cost.