Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. We can say:
A. Country B has no need to trade now.
B. Country B now possesses the absolute advantage in the production of both goods.
C. Country B now has the comparative advantage in iPod production.
D. Country B now possesses the absolute advantage in tablets only.
Answer: B
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The supply curve for stand up paddle boards
a. shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. b. shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph. c. does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph. d. does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.
Which of the following explains why the MC curve is rising in area b?
a. MP in area b is falling.
b. MC in area a is falling.
c. MP rises with output.
d. MC rises with output.