Imagine Two Countries with Identical Endowments of Resources

question 150

Multiple Choice

Imagine two countries with identical endowments of resources. Using all its resources, Broland can produce 5,000 books or 8,000 forks. Using the same resources, Nomia could produce 4,000 books or 7,000 forks. Which country has a comparative advantage producing forks?

• A) Broland, because it gives up 0.63 book for each fork produced
• B) Nomia, because it gives up 0.57 book for each fork produced
• C) Broland, because it gives up 1.6 books for each fork produced
• D) Nomia, because it gives up 1.75 books for each fork produced

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Definitions:

Journey Westward

The movement or migration of people towards the western regions of a country or continent, often associated with exploration, expansion, or the pursuit of new opportunities.

Spanish Territories

Areas around the world that were once part of the Spanish Empire, including portions of the Americas, Africa, Asia, and Europe.

Legal Settlement

An agreement reached between parties in a lawsuit, typically involving the payment of compensation by one party in exchange for the other's discontinuation of legal proceedings.

Oath Of Allegiance

A formal pledge of loyalty to a country or institution, often required of public officials, military personnel, and new citizens.