Country a Can Product 100 Units of Good X in a Day

question 152

Multiple Choice

Country A can product 100 units of Good X in a day and 40 units of Good Y while Country B can produce 50 units of Good X and 40 units of Good Y.

• A) These countries will not trade since Country A has a comparative advantage in the production of both goods.
• B) These countries will not trade since Country A will always be able to take advantage of Country B.
• C) These countries should trade since Country A has a comparative advantage in the production of Good X and Country B has a comparative advantage in the production of Good Y.
• D) These countries should trade since Country B has a comparative advantage in the production of Good X and Country A has a comparative advantage in the production of Good Y.

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Definitions:

Reminder Advertising

Advertising designed to keep the brand name in front of consumers or to remind them to purchase the product again.

Personal Selling

A marketing strategy where sales representatives directly interact with customers to provide information and sell products or services.

Continuous Innovation

A process of making regular, incremental improvements to products, services, or processes to enhance value and meet customer needs.

Electric Toothbrush

A toothbrush that uses electric power to move the brush head, often considered more effective in reducing plaque and gingivitis than manual toothbrushes.