Imagine Two Countries with Identical Endowments of Resources

question 169

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 could produce 4,000 books or 7,000 forks. Which country has a comparative advantage producing forks?

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

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Definitions:

Brown V. Board Of Education

A landmark 1954 U.S. Supreme Court decision that declared state laws establishing separate public schools for black and white students to be unconstitutional.

Confederate State

A state that was part of the Confederate States of America during the American Civil War, which seceded from the Union in an attempt to preserve slavery and states' rights.

Earl Warren

An American jurist and politician who served as the 14th Chief Justice of the United States, known for his leadership in landmark Supreme Court decisions, including Brown v. Board of Education.

Segregation

The enforced separation of different racial groups in daily life, such as in housing, education, and employment, historically sanctioned by law in the United States and other countries.