The Cost of Producing a Car in Germany Is 2,000

question 117

Multiple Choice

The cost of producing a car in Germany is 2,000 bushels of wheat,and the cost of producing a car in Canada is 1,200 bushels of wheat.The two countries can both benefit if the terms of trade are

• A)greater than 2,000 of wheat per car
• B)less than 1,200 bushels of wheat per car
• C)between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces wheat
• D)between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces cars
• E)between 1,200 bushels and 2,000 bushels of wheat per car,and Canada produces wheat

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Definitions:

Good Continuation

A principle in Gestalt psychology suggesting that elements aligned in a particular direction are perceived as a more unified whole.

Gestalt Law

Principles of perception that suggest humans naturally perceive objects as organized patterns and wholes rather than as separate components.

Figure-ground

A visual perception principle that describes how people differentiate an object (figure) from its surrounding area (ground).

Closure

A psychological term referring to the need for an individual to seek a resolution or an understanding to a traumatic or unsettling event or experience.