TVs Zimbabwe TVs South Africa 400 200 PPF PPF 6000 8000 T-Shirts T-Shirts 19. Re
ID: 1147779 • Letter: T
Question
TVs Zimbabwe TVs South Africa 400 200 PPF PPF 6000 8000 T-Shirts T-Shirts 19. Refer to figure above. Suppose Zimbabwe and South Africa only produce two goods: t-shirts and TVs. Their production possibilities frontiers are shown in the figure above. Which country has a comparative advantage in the production oft- shirts? a) Zimbabwe has a comparative advantage in the production of t-shirts b) South Africa has a comparative advantage in the production of t-shirts c) Neither country has a comparative advantage in the production oft-shirts d) There is not enough information to determine which country has a comparative advantage in t-shirt production 20. A country's consumption possibilities frontier will be outside its production possibilities frontier if, a. The country's technology is superior to the technologies of other countries b. The citizens of the country have a greater desire to consume goods and services than do the citizens of other countries c. The country specializes in their comparative advantage(s) and engages in trade d. All of the above are correctExplanation / Answer
Answer 19 a) Zimbabwe had a comparitive advantage in the production of t-shirts.
Since South Africa has a comparitive advantage in the production of Tvs, hence Zimbabwe has a CA in T shirts.
Hence they can both trade in their products of comparative advantage and increase the world economy.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.