Suppose an American Worker Can Make 100 Chairs or Catch

question 10

Multiple Choice

Suppose an American worker can make 100 chairs or catch 900 fish per day.On the other hand,a Chilean worker,can make 40 chairs or catch 400 fish per day.The United States has an absolute advantage in the production of both fish and chairs.This means that the United States:

• A) should produce only chairs and trade with Chile to get fish.
• B) should produce only fish and trade with Chile to get chairs.
• C) should take advantage of Chile by trading with them.
• D) can produce more fish and chairs than Chile given the same amount of workers.

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Definitions:

Causation

The relationship between cause and effect, where one event or action directly results in the occurrence of another.

Correlation Coefficients

Statistical measures that quantify the strength and direction of a relationship between two variables, often denoted as "r".

Illusory Correlations

The experience of detecting associations among factors (usually persons, activities, or behaviors) even in the absence of a genuine relationship.

Expectations

Anticipated outcomes or beliefs about what will happen in the future.