If the Autarky Px/Py Is Lower in Nation 1 Than

question 15

Multiple Choice

If the autarky Px/Py is lower in nation 1 than in nation 2 without trade:

• A) nation 1 has a comparative advantage in commodity Y
• B) nation 2 has a comparative advantage in commodity X
• C) nation 2 has a comparative advantage in commodity Y
• D) none of the above

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Definitions:

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.

Retroactive Interference

A process where new information interferes with the ability to recall older information.

Proactive Interference

The phenomenon where older memories hinder the recall of newly learned information.