Suppose a Producer Requires a Smaller Quantity of Inputs to Produce

question 193

Multiple Choice

Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. Is this information sufficient to determine in which good the producer has a comparative advantage?

• A) Yes, the producer has a comparative advantage in carrots.
• B) Yes, the producer has a comparative advantage in onions.
• C) No, because information about the costs of inputs is missing.
• D) No, because information about other producers is missing.

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Definitions:

Egocentrism

A cognitive bias that makes an individual unable to understand or assume any perspective other than their own.

A-not-B Effect

A cognitive phenomenon observed in infants where they repeatedly reach for an object at a place (A) where it was previously found, even after seeing it moved to a new location (B).

Perseverates

The repetition of a particular response (such as a word, phrase, or gesture) despite the absence or cessation of a stimulus.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering theory of cognitive development in children.