Consider Two Countries That Can Produce Wheat and Coffee

question 59

Multiple Choice

Consider two countries that can produce wheat and coffee.The gains from trade when the two countries have different opportunity costs are realized when

• A)production possibility boundaries shift inward.
• B)the two countries continue to produce the same quantities of wheat and coffee.
• C)each country has an absolute advantage in one of the two commodities.
• D)resources are reallocated within the two countries such that each specializes in the production of the good in which it has an absolute advantage.
• E)resources are reallocated within the two countries such that each specializes in the production of the good in which it has a comparative advantage.

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Definitions:

Drive Theory

A theory suggesting that motivation is based on the goal of eliminating uncomfortable states that arise from physiological needs.

Punching the Wall

An act of physical aggression or frustration where an individual strikes a wall with their fist.

Positive Reinforcement

A technique in behavior modification that involves rewarding a desired behavior to increase the likelihood of it happening again.

Drive Theories

Psychological theories that describe motivation as being driven by biological needs that demand satisfaction.