A Widget Has an Opportunity Cost of 4 Wadgets in Saudi

question 96

Multiple Choice

A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2 wadgets in the United States. Given these opportunity costs, you would suggest that:

• A) Saudi Arabia specialize in widgets and the United States in wadgets.
• B) No trade should take place.
• C) Saudi Arabia specialize in wadgets and the United States in widgets.
• D) Both countries should produce an equal amount of each.

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Definitions:

Opposition To Current

Resistance or any impedance facing the flow of electric current in a circuit, hindering the movement of charge.

Low-pass

A filter designed to allow signals with a frequency lower than a certain cutoff frequency to pass through while attenuating frequencies higher than the cutoff frequency.

Notch Filter

A filter designed to remove or significantly reduce the strength of a specific frequency or range of frequencies from a signal.

Band-rejection

A filter that blocks frequencies within a certain range, allowing frequencies outside that range to pass through.