The Table Below Shows the Quantities of Rice and Wheat

question 11

Multiple Choice

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good.

-Refer to the table above.Which of the following is true in this case?

• A) Country Y has an absolute advantage only in the production of wheat.
• B) Country Y has an absolute advantage only in the production of rice.
• C) Country X has a comparative advantage in the production of wheat.
• D) Country X has a comparative advantage in the production of rice.

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Definitions:

Fixed Expenses

Costs that do not change in total despite changes in the volume of goods or services produced or sold, such as rent or salary expenses.

Volatility

This refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of logarithmic returns.

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been subtracted from total revenue, indicating profitability.

Contribution Margin Ratio

A measure that indicates the percentage of each sales dollar that contributes to covering fixed costs and generating profit.