Consider the Following Information About the Production of Two Goods

question 2

Multiple Choice

Consider the following information about the production of two goods, X and Y, in two countries, A and B:
∙ In Country A it takes Xa units of resources to produce one unit of X and Ya units of resources to produce one unit of Y.
∙ In Country B it takes Xb units of resources to produce one unit of X and Yb units of resources to produce one unit of Y.
∙ Assume the amount of resources used to produce the goods in the two countries can be compared unambiguously.
TABLE 32-1
-Refer to Table 32-1. Country A has a comparative advantage in producing good X if

• A) Xa/Ya) is less than Xb/Yb).
• B) Xa/Xb) is greater than Ya/Yb).
• C) Xa/Ya) is greater than Xb/Yb).
• D) Xa is less than Yb.
• E) Xa = Xb.

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Definitions:

Instinctive Drift

The phenomenon whereby an animal's learned behavior reverts to its natural instincts over time, often interfering with conditioned response training.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli based on their associations with different outcomes.

Extinction

In behavior psychology, the process where a conditioned response decreases or disappears after the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Higher-Order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second, often weaker, conditioned response.