The Figure Given Below Represents the PPC in Two Nations

question 60

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods cars and food.
Figure 2.4

-Refer to Figure 2.4 and identify the correct statement.

• A) Germany has comparative advantage in production of cars.
• B) Korea has comparative advantage in production of cars.
• C) Germany has comparative advantage in production of food.
• D) Korea has a lower opportunity cost for making cars.
• E) Germany has a lower opportunity cost for making food.

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Definitions:

Simple Tasks

Tasks that require a minimal amount of cognitive effort and skill to complete.

Complicated Tasks

Tasks that are multifaceted and complex, requiring significant mental effort, skill, or resources to complete successfully.

Social Compensation Effects

The phenomenon whereby individuals work harder in a group to compensate for the perceived lower performance of others.

Collective Effort Model

A theoretical framework that suggests individual motivation in group tasks is influenced by the expected outcomes of the collective effort.