Econostan Can Produce a Widget at the Cost of One

question 126

Multiple Choice

Econostan can produce a widget at the cost of one thingamajig. Its trading partner can produce the same widget at a cost of two thingamajigs. Based on this information, which statement is true?

• A) Econostan should specialize in widgets and import thingamajigs.
• B) Econostan should specialize in thingamajigs and import widgets.
• C) Econostan has a comparative advantage in producing thingamajigs.
• D) There is no advantage to trade between the two.

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Definitions:

Two-dimensional Array

A structure used in programming to store information in a grid or matrix form, consisting of rows and columns.

Reference Variables

Reference variables in programming are used to refer to objects; they store the memory address of objects rather than actual values.

Manipulate Objects

The process of changing, editing, or interacting with objects in programming to accomplish specific tasks.

Base Address

The starting address where an array or data structure is stored in memory.