Question

pregunta 13 (4 puntos)
using this example, choose the answer that best describes the advantage each country has.

country a	item	country b
700	tractors	700

○ a country a has a statistical advantage in tractors and country b has a comparative advantage in eggs.
○ b country a has a comparative advantage in eggs and country b has a comparative advantage in tractors.
○ c country a has a comparative advantage in tractors and country b has an absolute advantage in eggs.
○ d country a has an absolute advantage in tractors and country b has an absolute advantage in eggs.

pregunta 14 (3 puntos)
market activities that are sometimes, but not always, illegal that are not reported to avoid paying taxes are called ____

○ a black market activities
○ b unevaluated economy
○ c under the table
○ d underground economy

Explanation:

in tractors.

Step2: Calculate opportunity cost (eggs per tractor)

Country A: $\frac{5000}{700} \approx 7.14$ eggs/tractor. Country B: $\frac{8000}{700} \approx 11.43$ eggs/tractor.

Step3: Determine comparative advantage

Country A has lower opportunity cost for tractors → comparative advantage in tractors.

(Pregunta 14):
Market activities unreported to evade taxes (sometimes illegal) are defined as the underground economy. "Under the table" refers to payment method, not the activities themselves; "black market" is strictly illegal; "unevaluated economy" is not a standard term.

Answer:

(Pregunta 14):
d. underground economy