In a Two-Nation, Two-Good World, If Both Nations Have Identical

question 81

Multiple Choice

In a two-nation, two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have

• A) no comparative advantage over the other nation.
• B) a comparative advantage in one good and a comparative disadvantage in the other good.
• C) no absolute advantage over the other nation.
• D) an absolute advantage in one good and an absolute disadvantage in the other good.

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Definitions:

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action for individuals or organizations.

Measurement Error

The difference between the value that is observed in a measurement and the true value of what is being measured, often due to imperfections in measurement techniques.

Poorly Worded Questions

Queries formulated in a way that makes them difficult to understand or answer accurately, often leading to confusion or misinterpretation.

Social Desirability Effects

The tendency for survey respondents to answer questions in a manner that will be viewed favorably by others, potentially skewing true responses.