Suppose Two Countries Use Different Combinations of Inputs, Such as Labour

question 46

Multiple Choice

Suppose two countries use different combinations of inputs, such as labour and capital, to produce the same product.This implies all of the following except that

• A)the two countries use different technologies to produce the product.
• B)the inputs are not equally productive in the two countries.
• C)the prices of the inputs are not the same in the countries.
• D)one country is more efficient in the production of the good than the other.

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Definitions:

Draining

The act or process of depleting or being depleted of resources or energy.

Inert Substance

A substance that does not undergo chemical reactions under a set of given conditions, often used as a control in experiments.

Placebo

A harmless substance or treatment that has no therapeutic effect, used as a control in testing new drugs.

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.