Table 3-4 -According to Table 3-4, If England and Spain Do Not

question 41

Multiple Choice

Table 3-4
$\begin{array}{|l|c|c|c|c|}\hline&\text { Labour hours needed to make one unit of: }&&\text { Amount Produced in } 40 \text { hours: }\\\hline & \text { Cheese } & \text { Bread } & \text { Cheese } & \text { Bread } \\\hline \text { England } & 3 & 2 & 13.3 & 20 \\\hline \text { Spain } & 1 & 5 & 40 & 8 \\\hline\end{array}$
-According to Table 3-4, if England and Spain do not trade:

• A)they will both be better off
• B)they will miss out on the opportunity to expand their production possibilities frontier
• C)they will consume inside their production possibilities frontier
• D)they will have absolute advantage over each other in the production of both goods

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Definitions:

Growth Needs

Psychological desires for personal development, improvement, and the achievement of one's potential.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, structured as a pyramid with the most fundamental needs at the bottom and self-actualization at the top.

Perceived Inequity

A feeling of unfairness that arises when individuals compare their own effort-reward ratio to others'.

Equity Theory

A theory of motivation that focuses on the fairness of the distribution of rewards and resources within interpersonal relationships.