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:

Intensity of Nonspectral Color

The degree of strength or vividness of a color that does not correspond to a single wavelength of light but is perceived as a mixture of wavelengths.

McCullough After-effect

A phenomenon where prolonged viewing of colored stimuli causes an object to appear in complementary colors when subsequently viewed on a white background.

Pool Their Signals

This concept involves combining multiple indicators or signals to enhance decision-making or analysis.

Bipolar Cells

Bipolar cells are a type of neuron found in the retina, acting as a middle layer that relays signals from photoreceptors to ganglion cells.