This Table Shows How Much Wine and Cheese Can Be

question 107

Multiple Choice

This table shows how much wine and cheese can be produced in Spain and Portugal with one unit of equivalent resources. Initially there is no trade. Once trade opens up, transportation costs are assumed to be zero. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Wine } \\\text { (units) }\end{array} & \begin{array} { l } \text { Cheese } \\\text { (units) }\end{array} \\\hline \text { Spain } & 2 & 8 \\\hline \text { Portugal } & 2 & 3 \\\hline\end{array}\\\text { TABLE 33- } 5\end{array}$$
-Refer to Table 33- 5. The comparative advantage in wine is held by

• A) Portugal.
• B) both countries.
• C) -- insufficient information to determine the answer.
• D) neither country.
• E) Spain.

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Definitions:

Self-Serving Biases

Attributional distortions that protect or enhance self-esteem or the self-concept.

Ultimate Attribution Error

The tendency to attribute negative behaviors of an outgroup member to their character while attributing positive behaviors to situational factors.

Ingroup Actions

Refers to the behaviors and activities that are conducted by members within a specific group, often aimed at achieving the group's goals or maintaining its cohesion.

False Consensus Effect

Seeing our own behaviour as being more typical than it really is.