Suppose Julian Has the Absolute Advantage in Producing Two Goods

question 49

Multiple Choice

Suppose Julian has the absolute advantage in producing two goods.Which statement best describes possible specialization?  

• A) Julian must also have a comparative advantage in both goods. 
• B) Julian cannot benefit from trade 
• C) Julian will have the comparative advantage in only one good. 
• D) Julian should specialize in the production of both goods.

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Definitions:

Peripheral Organs

Peripheral organs refer to the organs and systems located outside of the central nervous system, mainly involved in carrying out the specific functional tasks of the body.

CCK

Cholecystokinin (CCK) is a hormone that stimulates the digestion of fat and protein by releasing bile from the gallbladder and digestive enzymes from the pancreas.

Genetically Obese Rats

Rats that become obese due to genetic predispositions, often used in studies to understand obesity in humans.

Lateral Hypothalamus

A part of the hypothalamus in the brain that plays a significant role in controlling hunger and thirst.