Consider a Country That Has Two Industries

question 98

Multiple Choice

Consider a country that has two industries.In the north,they grow wild rice,which requires a lot of rainfall.In the south,they grow wheat,which requires just a moderate amount of rainfall (too much rainfall is bad for wheat production) .One year,there is a record rainfall.This will result in

• A)a parallel shift inward of the production possibilities frontier.
• B)a parallel shift outward of the production possibilities frontier.
• C)the production possibilities frontier swiveling, with the wild rice intercept increasing, and the wheat intercept decreasing.
• D)the production possibilities frontier swiveling, with the wild rice intercept decreasing, and the wheat intercept increasing.
• E)none of the above.

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Definitions:

In-Group

A group in society with which an individual psychologically feels a sense of belonging.

Out-Group

A social group towards which a person feels a sense of competition or opposition.

"Robber's Cave" Experiment

A classic social psychology experiment by Muzafer Sherif that studied intergroup conflict and cooperation by observing boys at a summer camp divided into competing groups.

Subordinate Goals

Objectives or goals that require the cooperative efforts of two or more people or groups to achieve, which can help to reduce conflict.