Suppose That a Worker in Country a Can Make Either

question 75

Multiple Choice

Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Which of the following is true?

• A) Country B should produce iPads and Country A should produce iPhones, and they could both benefit from trade.
• B) Country B should produce iPhones and Country A should produce iPads, and they could both benefit from trade.
• C) Neither country would benefit from trade because there is no comparative advantage at producing these goods.
• D) Because Country B has an absolute advantage at producing iPads, it should specialize in their production.

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Definitions:

Turing Test

A measure of a machine's ability to exhibit intelligent behavior equivalent to, or indistinguishable from, that of a human.

Natural Language Processing

The branch of artificial intelligence focused on enabling computers to understand, interpret, and generate human language in a meaningful way.

Crowdsourcing

The practice of obtaining information, ideas, or content by soliciting contributions from a large group of people, typically from an online community.

Startup Capital

Initial funding used to launch a new business or enterprise, covering costs such as operations, marketing, and product development until the business generates its own cash flow.