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

question 130

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 12x per day. If nation A produces only y, it can make 36y per day. If nation B produces only x, it can make 4x per day. If nation B produces only y, it can make 12y per day. After trade begins, nation _______ will specialize in the production of x and nation _______ will specialize in the production of y.

• A) B; B
• B) B; A
• C) A; B
• D) No trade will occur.

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Definitions:

Strange Situation

A standardized procedure devised by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and children.

Attachment

The emotional bond between an infant and the primary caregiver.

Mary Ainsworth

A developmental psychologist known for her work in early emotional attachment with "The Strange Situation" assessment.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development where children develop a sense of competency and skills, or feel inadequate and inferior.