QUESTION 24 Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16 computers per unit of labour. How does the concept of absolute advantage best apply to these countries? A. Country X should focus on producing computers, as it has an absolute advantage in car production. B. Country Y should specialize in producing cars, as it has an absolute advantage in car production. c. Both countries should produce cars and computers in equal proportions to maximize efficiency. D. Both countries should adopt protectionist policies to maintain domestic production levels.
QUESTION 24 Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16 computers per unit of labour. How does the concept of absolute advantage best apply to these countries? A. Country X should focus on producing computers, as it has an absolute advantage in car production. B. Country Y should specialize in producing cars, as it has an absolute advantage in car production. c. Both countries should produce cars and computers in equal proportions to maximize efficiency. D. Both countries should adopt protectionist policies to maintain domestic production levels.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...
Related questions
Question
![QUESTION 24
Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16
computers per unit of labour. How does the concept of absolute advantage best apply to these countries?
A. Country X should focus on producing computers, as it has an absolute advantage in car production.
B. Country Y should specialize in producing cars, as it has an absolute advantage in car production.
c. Both countries should produce cars and computers in equal proportions to maximize efficiency.
D. Both countries should adopt protectionist policies to maintain domestic production levels.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef5ab134-15dc-46eb-b3fd-5e4341e79a0e%2F855121f0-6be8-439d-8eea-cf9e9120edcf%2Fywpcp4h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 24
Country X can produce 10 cars or 20 computers per unit of labour, while Country Y can produce 8 cars or 16
computers per unit of labour. How does the concept of absolute advantage best apply to these countries?
A. Country X should focus on producing computers, as it has an absolute advantage in car production.
B. Country Y should specialize in producing cars, as it has an absolute advantage in car production.
c. Both countries should produce cars and computers in equal proportions to maximize efficiency.
D. Both countries should adopt protectionist policies to maintain domestic production levels.
AI-Generated Solution
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
![Brief Principles of Macroeconomics (MindTap Cours…](https://www.bartleby.com/isbn_cover_images/9781337091985/9781337091985_smallCoverImage.gif)
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971509/9781305971509_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Essentials of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337091992/9781337091992_smallCoverImage.gif)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Macroeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781285165912/9781285165912_smallCoverImage.gif)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning