Scenario: a Shoe Manufacturer Has Factories in Two Countries, Country

question 132

Multiple Choice

Scenario: A shoe manufacturer has factories in two countries, Country X and Country Y. Shoe manufacturing involves two main tasks-designing the shoe and stitching it. The value added per hour in each activity by workers in the two countries is shown in the table below.

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

• A) The opportunity cost of designing shoes is lower in Country X.
• B) The opportunity cost of stitching shoes is lower in Country X.
• C) Country Y has an absolute advantage in stitching shoes.
• D) Country Y has an absolute advantage in designing shoes.

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Definitions:

Simultaneous Feelings

Experiencing multiple emotions at the same time, often seen in complex situations or relationships.

Mixed Feelings

Experiencing contradictory emotions about a particular person, situation, or outcome at the same time.

Focus

The center of interest or activity; paying particular attention to a specific topic or task.

Expressing Feelings

The process of communicating emotions or emotional reactions to others, either verbally or through behavior.