Assume That the World Economy Consists of Two Countries: Russia

question 27

Multiple Choice

Assume that the world economy consists of two countries: Russia and Republic of Belarus. Each country can produce tomatoes and potatoes. Russia can produce 1000 tons of tomatoes or 3000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 3 × tomatoes = 3000. Republic of Belarus can produce 500 tons of tomatoes or 1000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 2 × tomatoes = 1000. Countries can freely trade with each other.
-Which country has absolute advantage in producing potatoes?

• A) Russia
• B) Republic of Belarus
• C) Both countries
• D) Neither country

---

Definitions:

Apprehension

Anxiety or fear that something bad or unpleasant will happen, or the arrest of a person suspected of committing a crime.

Willful

An action done intentionally, often referring to a deliberate decision made with full awareness of its consequences.

Intentional Torts

Intentional torts are wrongful actions performed intentionally by a person against another person or property, resulting in harm.

Intentional

Intentional refers to actions done with purpose or deliberate intent, often in the context of torts or criminal law, where the mindset of the actor plays a key role.