Assume That the Opportunity Cost of Producing Wheat Is Lower

question 27

Multiple Choice

Assume that the opportunity cost of producing wheat is lower in Australia compared with Malaysia. Further assume that the opportunity cost of producing cars is higher in Australia compared with Malaysia. Which country has a comparative advantage in producing cars?

• A) Australia and Malaysia.
• B) Australia.
• C) Malaysia.
• D) Both countries have to specialise in producing wheat.

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Definitions:

Parasympathetic System

A division of the autonomic nervous system responsible for conserving energy and promoting restful states by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.

Sympathetic System

Part of the autonomic nervous system that activates the body's response to stress, preparing the body for action.

Endocrine System

A collection of glands that produce hormones which regulate metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Motivational Tension

A psychological condition where an individual feels compelled to act due to a perceived discrepancy between their current state and their desired state.