Comparative and Absolute Advantage Quick Check

Question

5 of 55 of 5 Items

Question
A country produces books and video games exclusively. In the same time it takes to produce one video game, the country could produce 4 books. If the country only focused on one of the goods to produce, the maximum amount the country can produce is either 200 video games or 800 books. They can create a combination of the two goods, but the opportunity cost for production will remain the same. If the country would like to consume a combination of 100 video games and 1,400 books, which of the following is true?(1 point)
Responses

a It is impossible for the country to consume a combination of 100 video games and 1,400 books.

b The country might consume 100 video games and 1,400 books following trade.

c This is only possible if the country produces 600 more books and 100 fewer video games itself.

d The country can produce 600 more books and 100 fewer video games itself, or it can engage in trade.

Answer 1

b The country might consume 100 video games and 1,400 books following trade.