Thailand Has a Comparative Advantage in Rice and an Absolute

question 9

Multiple Choice

Thailand has a comparative advantage in rice and an absolute advantage in both rice and cell phones. Indonesia has a comparative advantage in cell phones. According to this scenario

• A) Indonesia should import both cell phones and rice.
• B) Thailand should export both cell phones and rice.
• C) Thailand should export rice and import cell phones.
• D) Indonesia should export rice and import cell phones.

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Definitions:

System I

Refers to the fast, automatic, and intuitive way of thinking, as opposed to System II's slower, more deliberate thought process.

System II

Often referred to in the context of dual-process theories of reasoning, System II is the analytical and reflective thought process that requires conscious effort.

Unconscious Processing

Mental processes that occur without conscious awareness or intention, influencing perceptions, thoughts, and behaviors.

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one's preconceptions, leading to statistical errors.