Traders Should Specialize in the Good in Which

question 44

Multiple Choice

Traders should specialize in the good in which:

• A) they have the lowest opportunity cost.
• B) they have an absolute advantage.
• C) their trading partner has the lowest opportunity cost.
• D) they do not have an absolute advantage.

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Definitions:

Pitch

The quality of a sound governed by the rate of vibrations producing it; the degree of highness or lowness of a tone.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves), or in an electromagnetic field (as in radio waves and light).

Sound Wave

A type of pressure wave generated by vibrating objects, traveling through mediums such as air, water, or solids, and perceived as sound by the human ear.

Müller-Lyer Illusion

A visual illusion in which two lines of the same length appear to be of different lengths because of the orientation of arrow-like tails at their ends.