Suppose That a Country in the Classical Model Has the Following

question 1

Multiple Choice

Suppose that a country in the Classical model has the following production-possibilities frontier (PPF) :

If, in autarky, the country is producing 700 computers and is located at point M on the PPF, the country would be producing __________ autos. If the country is now opened to trade at a terms of trade of 1 auto: 2 computers (or 1 computer: 0.5 auto) , it would export __________.

• A) 120; autos
• B) 120; computers
• C) 280; autos
• D) 280; computers

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Definitions:

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Animals

Animals are multicellular, eukaryotic organisms of the kingdom Animalia that possess mobility at some point in their life cycle and consume organic material.

Obedience

A form of social influence where an individual acts in response to a direct order from another person, usually an authority figure.

Zimbardo

Philip Zimbardo, a psychologist known for his research on social psychology, including the Stanford prison experiment.