Suppose That a Worker in Country a Can Make Either

question 86

Multiple Choice

Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Which of the following is true?

• A) Country B should produce tablets and Country A should produce iPods, and they could benefit from trade.
• B) Country B should produce iPods and Country A should produce tablets, and they could benefit from trade.
• C) Neither country can benefit from trade since no comparative advantage exists.
• D) Because Country B has the absolute advantage in producing tablets, they should specialize in the production of tablets.

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Definitions:

Morpheme

The smallest grammatical unit in a language that carries meaning, such as a root word, prefix, or suffix.

Semantics

The meaning of words and sentences.

Environmental Determinants

Factors within the environment that influence the development, behavior, and living conditions of individuals.

Biological Determinants

Factors related to biological or genetic conditions that influence an individual's health or characteristics.