If Countries 1 and 2 Produce Only Two Goods,A and B,and

question 110

Multiple Choice

If countries 1 and 2 produce only two goods,A and B,and they have the same opportunity cost for the production of good A (and thus good B) ,then

• A) each country will specialize in the production of one good and engage in trade.
• B) neither country will specialize in the production of a good,but both will engage in trade.
• C) one country will specialize in the production of a good,and both will engage in trade.
• D) neither country will specialize in the production of a good,and there will be no incentive for trade.

---

Definitions:

Organic Societies

Refers to societies that function cohesively, with each part working together, similar to an organism, often contrasted with mechanical or industrial societies.

Nonmaterial Social Facts

Aspects of social life that exist beyond the physical, including beliefs, values, norms, and social norms that influence human behavior.

Collective Consciousness

The set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society.

Collective Conscious

A collection of common beliefs, thoughts, and ethical views that act as a cohesive element in society.