Suppose That Labor Is the Only Productive Resource Needed

question 94

Multiple Choice

Suppose that labor is the only productive resource needed.Scotland has a comparative advantage in producing firewood,while Iceland has a comparative advantage in producing wool.If the two nations trade with each other,

• A)Scotland should export wool and Iceland should export firewood.
• B)Scotland should export both wool and firewood.
• C)Scotland should export firewood and Iceland should export wool.
• D)Iceland should export both wool and firewood.

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Definitions:

Craving Beer

A strong desire or urge to consume beer, often resulting from psychological factors, social situations, or physiological dependence.

Implicit Memory

Unconscious memory: subjects can demonstrate knowledge, such as a skill, conditioned response, or recall of events on prompting but cannot explicitly retrieve the information.

Verbal Tasks

Cognitive tasks involving language, such as speaking, reading, and writing, used to assess linguistic skills and brain function.