In Order for Mutually Beneficial Trade to Occur Between Two

question 186

Multiple Choice

In order for mutually beneficial trade to occur between two otherwise isolated nations,

• A)each nation must be able to produce at least one good absolutely cheaper than the other.
• B)each nation must be able to produce at least one good relatively cheaper than the other.
• C)each nation must face constant costs in the production of the good it exports.
• D)one nation's production must be labor-intensive, while the other nation's production is capital-intensive.

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Definitions:

Dominant Majority Group

The social group in a society that holds the most power and influence, often setting norms and standards for others to follow.

Contact Hypothesis

A theory suggesting that under appropriate conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Equal Status

A principle suggesting that greater interaction between groups under conditions of equal status will reduce prejudice and improve relations among them.

Hostility

Aggressive behavior or attitudes directed towards others, often stemming from anger or antagonism.