Suppose There Are Only 2 Nations a and B,and Only

question 219

Multiple Choice

Suppose there are only 2 nations A and B,and only two goods,x and y.If nation A produces only x,it can make 12x per day.If nation A produces only y,it can make 36y per day.If nation B produces only x,it can make 4x per day.If nation B produces only y,it can make 12y per day.After trade begins,nation ________ will specialize in the production of x and nation ________ will specialize in the production of y.

• A)A;B
• B)B;B
• C)B;A
• D)No trade will occur.

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Definitions:

Alfred Binet

A French psychologist best known for developing the first standardized intelligence test, which laid the foundation for modern intelligence testing.

Lewis Terman

An American psychologist best known for his revision of the Stanford-Binet Intelligence Scales and research on gifted children.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it.

Formal Knowledge

Pertains to information or skills acquired through structured learning or education systems.