If All We Know Is That the Opportunity Cost of a Car

question 35

Multiple Choice

If all we know is that the opportunity cost of a car equals 100 refrigerators in France,and 200 refrigerators in Italy,we can conclude

• A)nothing about which nation has the absolute advantage in refrigerator production
• B)that France has a comparative advantage in refrigerator production
• C)that mutually beneficial international trade might involve the market exchange of 1 car for 80 refrigerators (whereby France would gain more than Italy)
• D)that mutually beneficial international trade might involve the market exchange of 1 car for 300 refrigerators (whereby Italy would gain more than France)
• E)that France has the absolute advantage in car production

---

Definitions:

Interference Mechanisms

Processes that disrupt, hinder, or modify a signal, activity, or function, often used in the context of neural pathways and cognitive functions.

Conceptual Filters

Theoretical frameworks or cognitive biases that influence how we perceive and interpret information.

Communication Channels

The mediums through which information is transmitted from a sender to a receiver, such as spoken words, written texts, or electronic media.

Receiver

An individual or entity appointed by a court to manage the property, finances, or operations of a company or entity in distress.