If Individuals a and B Can Both Produce Only Goods

question 93

Multiple Choice

If individuals A and B can both produce only goods X and Y, and A does not have a comparative advantage in the production of either X or Y, then we know

• A)B has an absolute advantage in the production of X and Y.
• B)A and B have the same opportunity costs for X and for Y.
• C)B has a comparative advantage in the production of both X and Y.
• D)the gains from trade will be large but only in one direction.
• E)A must have lower opportunity costs of production for both goods.

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Definitions:

Brain

The organ located in the head of an animal that controls its actions and responses by processing sensory information.

Mind

The aspect of an individual that allows them to perceive the world and their own experiences, engage in thought, and experience emotions; the ability for conscious thinking and awareness.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life.

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.