Imagine Two Countries with Identical Endowments of Resources

question 255

Multiple Choice

Imagine two countries with identical endowments of resources. Using all its resources, Broland can produce 5,000 books or 8,000 forks. Using the same resources, Nomia can produce 4,000 books or 7,000 forks. Which country has a comparative advantage producing books?

• A) Broland, because it gives up 0.63 of a fork for each book produced
• B) Nomia, because it gives up 0.57 of a fork for each book produced
• C) Broland, because it gives up 1.6 forks for each book produced
• D) Nomia, because it gives up 1.75 forks for each book produced

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Definitions:

Conflicts

Disagreements or disputes resulting from opposing needs, demands, or views between parties.

Destructive

Causing harm or damage, either physically, emotionally, or environmentally.

Lose/Lose

A conflict resolution or situation outcome where all parties involved suffer losses or negative consequences.

Conflict Management

The practice of identifying and addressing disagreements in a constructive manner to resolve disputes and improve relationships.