Suppose There Are Only 2 Nations a and B, and Only

question 205

Multiple Choice

Suppose there are only 2 nations A and B, and only two goods, x and y. If nation A produces only x, it can make 20x per day. If nation A produces only y, it can make 15y per day. If nation B produces only x, it can make 15x per day. If nation B produces only y, it can make 15y per day. After trade begins nation _______ will specialize in the production of x and nation _______ will specialize in the production of y.

• A) A; A
• B) B; A
• C) A; B
• D) B; B

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Definitions:

Personal Factors

Individual attributes such as personality, skills, values, and experiences that influence behavior and attitudes.

Emotional Intelligence

The ability to understand, manage, and communicate one's feelings, as well as to navigate personal relationships with wisdom and empathy.

Intellect

The faculty of reasoning, understanding, and thinking critically and analytically.

Control One's Emotions

The ability to manage and regulate emotional responses in various situations.