Suppose That a Worker in Country a Can Make Either

question 134

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. Suppose Country B's population of workers increases to 600. Country B now has:

• A) an absolute advantage at producing both goods.
• B) an absolute advantage at producing tablets only.
• C) a comparative advantage at producing iPhones only.
• D) no need to trade.

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Definitions:

Creativity

Creativity is the ability to produce original, diverse, and valuable ideas or solutions.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Conformity

The act of aligning one's attitudes, beliefs, or behaviors with those of a group due to perceived pressure or the desire for acceptance.

Conflicts

Disagreements or disputes between individuals or groups due to differing needs, beliefs, or interests.