-Agnes Can Produce Either 1 Unit of X or 1

question 292

Multiple Choice

-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.

• A) Brenda has an absolute advantage in the production of X and Y.
• B) Agnes has a comparative advantage in the production of Y.
• C) Brenda has a comparative advantage in the production of X.
• D) Brenda cannot gain from trade.

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Definitions:

Transformational Grammar

A linguistic theory proposed by Noam Chomsky that describes how deep structures of language are transformed into surface structures.

Deep Structure

In linguistics, the underlying syntactic structure or meaning of a sentence, as opposed to its surface form.

Surface Structure

In linguistics, the superficial appearance or syntax of a sentence, as opposed to the deeper, underlying meaning.

Flexibility

The quality of being adaptable or variable, referring to the ability to adjust to new conditions or the capacity of being bent or stretched.