Suppose That,given the Same Number of Workers,the United States Can

question 108

Multiple Choice

Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?

• A) Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes.
• B) Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes.
• C) The United States can benefit from trading TVs but not potatoes with Chile.
• D) The United States has absolute advantage in producing both goods.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from its mean.

Sample Average

The sum of all values in a sample divided by the number of values, providing a central tendency measure of the sample.

Population Average

The mean value calculated for a specific characteristic within a given population.

Illusion of Control

The illusion of control is a cognitive bias where individuals overestimate their ability to influence events and outcomes that are largely beyond their control.