Assume That Initially Country a Exchanges Three Barrels of Oil

question 56

Multiple Choice

Assume that initially country A exchanges three barrels of oil for one ton of steel from country B. Later the arrangement changes to four barrels of oil for one ton of steel. This indicates that:

• A) the terms of trade for country B have improved.
• B) country A has a comparative advantage in the production of steel.
• C) the relative price of steel in terms of oil has fallen.
• D) the terms of trade for country A have improved.
• E) country B has an absolute advantage in the production of oil.

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Definitions:

Halo Effect

A cognitive bias where the perception of one positive characteristic of an individual or thing leads to the assumption of other positive traits.

Stereotyping

The oversimplified and generalized perception or depiction of a group of people, disregarding individual differences.

Organizational Support

The extent to which an organization provides resources, help, and backing to its employees to facilitate job performance and satisfaction.

Growth and Development

The processes of physical maturation and psychological and emotional advancements through various stages of life.