Suppose That Opportunity Costs Are Constant in Both France and Germany

question 71

Multiple Choice

Suppose that opportunity costs are constant in both France and Germany. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine. In Germany, maximum feasible hourly production levels are either 4 units of wheat or 10 units of wine. It is correct to state that

• A) Germany has an comparative advantage in producing both wheat and wine.
• B) Germany has a comparative advantage in producing wine.
• C) France has a comparative advantage in producing both wheat and wine.
• D) France has a comparative advantage in producing wine.

Grasp the principles underlying cognitive algebra in impression formation.

Identify the influence of individual traits on self-schema and perception.

Recognize the impact of vivid and salient stimuli on attention and memory.

Learn about the methods through which schemas can change over time.

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Definitions:

Socially Optimal Level

The most efficient allocation of resources or production level that maximizes social welfare, often considered in terms of economic or environmental outcomes.

Many Sellers

A characteristic of competitive markets where a large number of producers offer similar or identical products, ensuring no single seller can influence the market price or conditions.

Few Sellers

A market condition where only a small number of companies offer a product or service, potentially leading to oligopolistic competition.

Identical Products

Goods that are exactly the same in every feature, allowing them to be perfect substitutes for one another in the market.