If Samoa Could Produce Either 3 Coconuts or 12 Pineapples

question 98

Multiple Choice

If Samoa could produce either 3 coconuts or 12 pineapples per worker,while Guam could produce either 5 coconuts or 20 pineapples per worker,what can we conclude in this situation?

• A)Both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
• B)Mutually beneficial trade cannot occur.
• C)If trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
• D)Guam will be better off if it exports coconuts and imports pineapples.

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Definitions:

Interaction

The reciprocal action or influence between two or more entities or substances, often leading to a specific outcome.

Entitativity

The perception or degree to which a group is seen as a coherent, unified entity.

Coherent

Characterized by a logical, consistent, and orderly connection of parts, making them understandable and clear.

Drive Theory

Zajonc’s theory that the physical presence of members of the same species instinctively causes arousal that motivates performance of habitual behaviour patterns.