In a Two-Nation, Two-Good World, If Country a Has the Comparative

question 7

Multiple Choice

In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A

• A) should not trade with country B.
• B) could have the comparative advantage in producing the other good, Y, as well.
• C) must have the comparative disadvantage in producing the other good, Y.
• D) can produce good X with fewer resources than country B.

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Definitions:

Elaborative Rehearsals

A memory technique that involves thinking about the meaning of the information to be remembered or relating the information to other knowledge, thus enhancing recall.

Visual Information

Data received by the eyes that is processed by the visual system to form images, enabling the perception of the world around us.

Auditory Information

Information that is perceived through hearing.

Eyewitness Memory

The recollection by individuals of events they have witnessed, which can be affected by various factors and may not always be reliable.