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11.

If Country X is more productive in producing every good than Country Y, then

12.

Answer Questions 45 and 46 with reference to the following table. The following table shows the number of man-hours required by Country A and Country B in the production of toys and watches.

1 unit of Toys1 unit of Watches
Country A1 man-hour3 man-hours
Country B2 man-hours4 man-hours

Which of the following descriptions are correct?

(1)Country A enjoys an absolute advantage in the production of both goods.
(2)Country A enjoys an absolute advantage only in the production of toys.
(3)Country B enjoys a comparative advantage in the production of toys.
(4)Country B enjoys a comparative advantage in the production of watches.
13.

Answer Questions 45 and 46 with reference to the following table. The following table shows the number of man-hours required by Country A and Country B in the production of toys and watches.

1 unit of Toys1 unit of Watches
Country A1 man-hour3 man-hours
Country B2 man-hours4 man-hours

According to the principle of comparative advantage, when the two countries trade with each other, Country A will export ______ and import ______, and a mutually beneficial terms of trade can be 1 unit of toys equals ______.

14.

Both countries A and B produce goods X and Y. Under which of the following conditions does country A have a comparative advantage in the production of X?

15.

Refer to the information below and answer questions 46 and 47. Both country A and country B produce rice and wine. Suppose country A has ONE unit of resources while country B has TWO units of resources. Each country allocates half of their resources in the production of each product. The amounts of output in country A and country B are shown below.

Rice (Units)Wine (Units)
Country A6AND9
Country B10AND8

With ONE unit of resources,

(1)country A can produce either 6 units of rice or 9 units of wine.
(2)country A can produce either 12 units of rice or 18 units of wine.
(3)country B can produce either 5 units of rice or 4 units of wine.
(4)country B can produce either 10 units of rice or 8 units of wine.
16.

Refer to the information below and answer questions 46 and 47. Both country A and country B produce rice and wine. Suppose country A has ONE unit of resources while country B has TWO units of resources. Each country allocates half of their resources in the production of each product. The amounts of output in country A and country B are shown below.

Rice (Units)Wine (Units)
Country A6AND9
Country B10AND8

Which of the following statements is correct?

17.

Answer Questions 45 and 46 by referring to the following table. Before trade, the actual output of Country A and Country B with all their resources evenly allocated between the production of Good X and Good Y are shown below:

Good X (Units)Good Y (Units)
Country A100AND250
Country B100AND50

Which of the following about the two countries is correct?

18.

Answer Questions 45 and 46 by referring to the following table. Before trade, the actual output of Country A and Country B with all their resources evenly allocated between the production of Good X and Good Y are shown below:

Good X (Units)Good Y (Units)
Country A100AND250
Country B100AND50

Suppose each country has to pay a transportation cost of 0.5 units of Good X in trading 1 unit of Good Y. Which one of the following terms of trade is mutually beneficial?

19.

Suppose Mrs Wong, a sole proprietor of a garment factory, is the best cook in town, but she leaves all the cooking to her domestic helper at home. Which of the following would be correct?

20.

The following table shows the output of X and Y per unit of resources in countries A and B.

Goods X (units)Goods Y (units)
Country A1OR3
Country B2OR4

Which of the following is/are the terms of trade under which trade between the two countries is mutually beneficial?

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