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QUESTION 1 Which of the following differences is NOT considered a source of comparative advatage? 0 Difference in technology 0 Difference in capacity to attain
QUESTION 1 Which of the following differences is NOT considered a source of comparative advatage? 0 Difference in technology 0 Difference in capacity to attain absolute advatage Difference in factor endowments 0 Difference in climate QUESTION 2 The following table shows the number of workers used in the first row, while each of the subsequent rows - whose first cell is in green- shows the units produced of a particular good by that number of workers. For example: for good A, 2 workers produce 4 units of good A; while for good B, 2 workers produce 0.25 units of good B; and for good C 6 workers, produce 13 units of good C. Given the information from the table, select the good based ONLY on the returns to scale that is more likely to lead to trade in which most of the production is concentrated in a few locations because of efciency gains: Number of workers 2 4 6 8 10 Units of good A 4 8 12 16 20 Units of good B 0.25 1.5 4.25 12.25 25 Units of good C 8 11 13 14 15 Units of good D 5 1O 15 20 25 O GoodA 0 Good B 0 Good C 0 Good D
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