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-Agnes Can Produce Either 1 Unit of X or 1

Question 292

Multiple Choice

  -Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. A)  Brenda has an absolute advantage in the production of X and Y. B)  Agnes has a comparative advantage in the production of Y. C)  Brenda has a comparative advantage in the production of X. D)  Brenda cannot gain from trade.
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.


A) Brenda has an absolute advantage in the production of X and Y.
B) Agnes has a comparative advantage in the production of Y.
C) Brenda has a comparative advantage in the production of X.
D) Brenda cannot gain from trade.

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