Given the Information in the Table Above, If the World

question 12

Multiple Choice

Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then

• A) both countries could benefit from trade with each other.
• B) neither country could benefit from trade with each other.
• C) each country will want to export the good in which it enjoys comparative advantage.
• D) neither country will want to export the good in which it enjoys comparative advantage.
• E) both countries will want to specialize in cloth.

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Definitions:

Standard Time

The established duration that a given task should take to complete, often used in manufacturing and workforce management to optimize productivity.

Variable Allowance

An adjustment made to account for changes in work conditions that might affect the amount of effort or resources needed.

Payment

The act of transferring money in exchange for goods, services, or to settle a debt.

Checking

The process of verifying or inspecting items, details, or operations to ensure they meet required standards or are correctly executed.