Question

Two neighbors, countries A and B, produce books and biankets, among other goods and services. However, Country A produces more in both countries, these industries individually employ 30 peroent of the population. She condludes that country A has an absolute Maya's condlusion is flawed because of both goods than country B. A student of economics, Maya, also notes that advantage in the production of books and biankets over country B A. she assures that both courtries have linear production possible fort B. she assumes that country A has more liberal trade poicies than oortry B C. she assumes that country A's population is no larger than country Bs. D. she assumes that oountry Adoes not face roreasng margnal opponnty oost whe' sh ing resoures 'on one indaty to the deer E. she assumes that the productivity of workers in both oountres is identical.

Answer 1

Answer:

C. she assumes that country A's population is no larger than country Bs.

Explanation:

Maya's assumption is flawed because it is based on the assumption that both countries have the same population.

If for example country B has less population that A and the books and blankets produced are sufficient and even in excess of what they need. And on the other hand country As population is larger than country Bs, with production of books and blankets barely meeting the needs of the population. I n this scenario although country B produces less of books and blankets they have an absolute advantage over country A.