Consider the Following Information About the Production of Two Goods,X

question 34

Multiple Choice

Consider the following information about the production of two goods,X and Y,in two countries,A and B:
∙ In Country A it takes X_a units of resources to produce one unit of X and Y_a units of resources to produce one unit of Y.
∙ In Country B it takes X_b units of resources to produce one unit of X and Y_b units of resources to produce one unit of Y.
∙ Assume the amount of resources used to produce the goods in the two countries can be compared unambiguously.
-Refer to Table 32-1.There is no scope for gains from trade due to specialization between the two countries if

• A)(X_a/Y_a)is greater than (X_b/Y_b).
• B)X_a is equal to Y_b.
• C)(X_a/Y_a)is equal to (X_b/Y_b).
• D)X_a is less than Y_b and Y_a is less than Y_b.
• E)X_a is less than X_b.

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Definitions:

Deception

The act of misleading or misguiding someone by concealing or distorting the truth.

Peripheral-Route Processing

Type of information processing that involves attending to factors not involved in the message, such as the appearance of the source of the message, the length of the message, and other noncontent factors.

Central-Route Processing

Type of information processing that involves attending to the content of the message itself.

Cognitive Component

An aspect of our mental processes and attitudes, involving beliefs, thoughts, and awareness that contribute to our perceptions and reactions.