Assume That Transportation Costs Are Especially High for Widgets in the Two-Country,two-Product

question 58

Multiple Choice

Assume that transportation costs are especially high for Widgets in the two-country,two-product Ricardian model,and Country A enjoys a comparative advantage in Widgets,then

• A) country B must also enjoy a comparative advantage in Widgets.
• B) country B may end up exporting Widgets.
• C) country A may switch to having a comparative advantage in the other good.
• D) country A will still export Widgets.
• E) Trade may be impossible between the two countries.

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Definitions:

Sexual Dimorphism

The distinction between two sexes of the same species by physical appearance, including differences in size, color, or body structure.

Genetic Sex

Determined by the chromosomes an individual inherits (XX for females and XY for males), affecting the development of sexual and reproductive anatomy.

Gonads

The primary reproductive organs in animals, namely testes in males and ovaries in females, responsible for producing gametes and hormones.

Secondary Sex Characteristics

Features that distinguish the two sexes of a species apart from the reproductive organs, developing during puberty, such as body hair and voice changes.