Suppose That a Worker in Cornland Can Grow Either 40

question 48

Multiple Choice

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year.There are 20 workers in Cornland and 20 workers in Oatland.Which of the following statements is true?

• A)Both countries could gain from trade with each other.
• B)Neither country could gain from trade with each other because Cornland has an absolute advantage in both goods.
• C)Neither country could gain from trade with each other because neither one has a comparative advantage.
• D)Oatland could gain from trade between the two countries,but Cornland definitively would lose.

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Definitions:

PLC

Programmable Logic Controller, an industrial digital computer which has been ruggedized and adapted for the control of manufacturing processes.

Specific Input Or Output

A particular signal or data point received (input) by a system or produced (output) by a system, designated for a unique function or process.

Address

A specific location or identifier in memory or storage where data is held, allowing easy access and manipulation of the data.