Use the Figure Below to Answer the Following Questions

question 73

Multiple Choice

Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.

-Refer to Table 2.4.1. Which one of the following is true?

• A)Romulus has both an absolute advantage and a comparative advantage in the production of Y.
• B)Romulus has both an absolute advantage and a comparative advantage in the production of X.
• C)Vulcan has a comparative advantage in the production of X.
• D)Romulus has a comparative advantage in the production of X.
• E)Vulcan should specialize in the production of X.

---

Definitions:

Automaticity

The ability to process information with little or no effort.

Encoding

The process of converting information into a form that can be stored in memory, part of how information is processed and retained.

Information-Processing Approach

A perspective in cognitive psychology that examines how humans interpret, store, and retrieve knowledge, paralleling human thought processes to computer operations.

Processing Limitations

Refers to the bounds on the ability of individuals to process information, due to various cognitive or neural constraints.