A country produces books and video games exclusively. In the same time it takes to produce one video game, the country could
produce 4 books. If the country currently produces 800 books and 200 video games but would like to consume a combination of 100
video games and 1,400 books, which of the following is true? (1 point)
Comparative and absolute advantage quick check answers
1- What distinguishes comparative advantage from absolute advantage in production? B- A country has comparative advantage in production when its opportunity costs of producing a good are lower than another country's.
2- If both Japan and the United States directed all of their resources to the production of laptops, the United States would produce a greater quantity laptops in any period of time. Given this information, which of the following is necessarily true? A- The United States has an absolute advantage in laptop production.
3- At most, a country could produce 20,000 units of Good A or 5,000 units of Good B. What is the opportunity cost of producing one unit of Good B in terms Good A? D- 4 units of Good A
4- If all resources of Country A and Country B were dedicated toward the production of either apples or bananas, the maximum production of each is summarized in the table above. In order for both countries to benefit from trade, which country should specialize in banana production, and why? B-Country A since it has the comparative advantage in banana production.
5-A country produces books and video games exclusively. In the same time it takes to produce one video game, the country could produce 4 books. If the country currently produces 800 books and 200 video games but would like to consume a combination of 100 video games and 1,400 books, which of the following is true? C- The country might consume 100 video games and 1,400 books following trade.
Just took quick check I got 100%
The country might consume 100 video games and 1,400 books following trade.
make sure you read the responses the letters have changed on the quiz. I missed one because I wasn't playing close enough attention.
The last question was different for me
5 ~ A corporation owns several agricultural businesses and some land that it leases to farmers From the perspective of this corporation, what is the difference between a subsidy and a tax?
With a subsidy, the government would pay money to the corporation. With a tax, the government would collect money from the corporation
#5 for me was
In a healthy economy, what usually happens to income levels and inflation rates?
Answer : In a healthy economy, income levels and inflation rates rise at the same pace.
#'s 1-4 are correct