In a Two-Country, Two-Product World, the Statement "Germany Enjoys a Comparative

question 45

Multiple Choice

In a two-country, two-product world, the statement "Germany enjoys a comparative advantage over France in autos relative to ships" is equivalent to

• A) France having a comparative advantage over Germany in ships.
• B) France having a comparative disadvantage compared to Germany in autos and ships.
• C) Germany having a comparative advantage over France in autos and ships.
• D) France having no comparative advantage over Germany.
• E) France should produce autos.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in irrational or dysfunctional decision-making outcomes.

Self-Censorship

The act of withholding one's own speech or expression due to the fear of social or official repercussions.

Authority Rule

The power or right assigned to an individual or body to make decisions, enforce rules, and command obedience within a specified sphere.

Achieving Consensus

The process of working towards unanimity in decision-making where all members support the outcome.