Suppose the World Consists of Two Countries: Germany and Spain

question 44

Multiple Choice

Suppose the world consists of two countries: Germany and Spain. Further, suppose there are only two goods, food and clothing. Which of the following statements is true?

• A) If Germany has an absolute advantage in the production of food, then Spain must have an absolute advantage in the production of clothing.
• B) none of these answers.
• C) If Germany has a comparative advantage in the production of food, Spain might also have a comparative advantage in the production of food.
• D) If Germany has a comparative advantage in the production of food, it must also have a comparative advantage in the production of clothing.
• E) If Germany has a comparative advantage in the production of food, then Spain must have a comparative advantage in the production of clothing.

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Definitions:

Existential Realities

The fundamental aspects of human existence, such as free will, death, isolation, and meaninglessness, that individuals must confront.

Direct Contact

In psychology, it refers to face-to-face or direct interaction between individuals, as opposed to mediated or indirect forms of communication.

Integrated Polarities

A concept involving the combination or synthesis of two opposite attributes or tendencies, aiming to create a balanced perspective or solution.

Responsive Relationship

A relationship characterized by openness, sensitivity, and adaptation to the needs and feedback of the other, often emphasized in therapeutic settings.