Econostan Can Produce a Widget at the Cost of One

question 11

Multiple Choice

Econostan can produce a widget at the cost of one thingamajig. Its trading partner can produce the same widget at a cost of two thingamajigs. Based on this information, which statement is true?

• A) Econostan should specialize in widgets and import thingamajigs.
• B) There is no advantage to trade between the two.
• C) Econostan should specialize in thingamajigs and import widgets.
• D) Econostan has a comparative advantage in producing thingamajigs.

---

Definitions:

Bones

Bones are hard, rigid structures that make up the skeleton in vertebrates, providing support and protection.

Social Clock

The societal expectations that dictate the appropriate timing for major life events, such as marriage, parenthood, and retirement.

Maturational Cycle

Refers to the natural progression of growth and development that an individual undergoes, influenced by genetic factors.

Empty Nest

The stage in a parent's life when their children have grown up and left home, which can lead to feelings of sadness, loss, or a shift in identity.