Given the Information in the Table Above, If the World

question 12

Multiple Choice

Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then

• A) both countries could benefit from trade with each other.
• B) neither country could benefit from trade with each other.
• C) each country will want to export the good in which it enjoys comparative advantage.
• D) neither country will want to export the good in which it enjoys comparative advantage.
• E) both countries will want to specialize in cloth.

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Definitions:

Intervening Cause

An event that occurs after a defendant's initial act of negligence and contributes to the harm, potentially relieving the defendant of some liability.

Unforeseeable Later Act

Events or actions that occur after a contract is executed, which could not have been anticipated by either party at the time of the contract.

Comparative Negligence

A legal doctrine used in tort law that reduces the amount of damages a plaintiff can recover based on the percentage of fault attributed to them.

Assumption of Risk

A legal defense in tort law where a person voluntarily exposes themselves to a known risk, potentially limiting their right to claim damages.