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.

---

Definitions:

Financial Loss

A decrease in net income that results from operating activities, investments, and changes in fair value of assets, exceeding the income from these activities.

Stockholder

An individual, company, or entity that owns at least one share in a company, giving them partial ownership.

Outstanding Stock

Refers to the shares of a company's stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares.

Authorized

Officially approved or permitted, often used in the context of legal or corporate permissions.