Country a Can Produce 10 Yards of Textiles and 6

question 12

Multiple Choice

Country A can produce 10 yards of textiles and 6 pounds of food per unit of input.Country B can produce 8 yards of textiles and 5 pounds of food per unit of input.

• A)Country A is relatively more efficient than Country B in the production of textiles
• B)Country B is relatively more efficient than Country A in the production of food
• C)Country A has an absolute advantage over Country B in the production of food and textiles
• D)All of these

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Definitions:

Composition

The process of combining two functions in such a way that the output of one function becomes the input of another.

Function

A relation between a set of inputs and a set of permissible outputs, often defined by an equation.

Inverse Function

A mathematical function that reverses the effect of another function, such that if the function f applied to an input x gives a result of y, then applying its inverse function to y gives the result x.

Function

An interrelation between a variety of inputs and a catalog of admissible outputs, with the requirement that every input is pinpointed to a unique output.