Two neighbors, countries a and b, produce books and blankets, among other goods and services. however, country a produces more of both goods than country

b. a student of economics, maya, also notes that in both countries, these industries individually employ 30 percent of the population. she concludes that country a has an absolute advantage in the production of books and blankets over country

b. maya's conclusion is flawed because

Question

Business

Houston

13 February, 14:53

Two neighbors, countries a and b, produce books and blankets, among other goods and services. however, country a produces more of both goods than country

b. a student of economics, maya, also notes that in both countries, these industries individually employ 30 percent of the population. she concludes that country a has an absolute advantage in the production of books and blankets over country

b. maya's conclusion is flawed because

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Answers (1)

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Tia · Answer 1

Answer: She assumes that country A's population is no larger than country B's.

Explanation: Information given,

a. Countries a and b, produce books and blankets, among other goods and services.

b. Country a produces more of both goods than country b.

c. These industries individually employ 30 percent of the population.

However, there is no information on the population size. If population in country a is larger than in country b, then country b employs more labor in these industries. So, it may be possible that the per unit output of labor is actually lower in country a than in b.

Thus, Maya's conclusion is flawed because she assumes that country A's population is no larger than country B's.