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:

Scientific Hypotheses

Proposed explanations for a phenomenon, based on observation, which can be tested through experimentation or observation.

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the set of premises provided, moving from general principles to specific instances.

Potential Energy

The energy possessed by an object due to its position or configuration, capable of being transformed into kinetic energy.

Light Bulb

An electric device that produces light from electricity, typically consisting of a filament that glows when heated.