If Two Countries Have Identical Production-Possibilities Frontiers but Different Tastes

question 21

Multiple Choice

If two countries have identical production-possibilities frontiers but different tastes, it is possible for each country to gain from trade with the other country

• A) in the Classical model but not in the neoclassical model.
• B) in the neoclassical model but not in the Classical model.
• C) in both the Classical model and the neoclassical model.
• D) in neither the Classical model nor the neoclassical model.

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Definitions:

Appeal to Authority

A logical fallacy where the conclusion is justified by citing an authoritative or perceived authoritative figure who mentioned it.

Non-expert

An individual who lacks specialized knowledge or expertise in a particular area or field.

Proposition

A proclamation or affirmation that presents a belief or assessment, capable of being true or untrue.

Testimony

Evidence or statements given by witnesses, typically in court or in the documentation of events or beliefs.