Suppose Aharoni and Kalinga Are the Only Two Countries in the World

question 115

Multiple Choice

Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes.Aharoni has 100 workers,and Kalinga has 200 workers.The table below shows the per-day production possibilities for each country.Aharoni has:​ ​
Table 17.1:

• A)an absolute advantage in computers only.
• B)an absolute advantage in shoes only.
• C)a comparative advantage in computers.
• D)a comparative advantage in shoes.
• E)neither absolute advantage nor comparative advantage in computers.

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Definitions:

Miniature Goat

A small breed of goat kept as a pet or for milk production, characterized by its significantly smaller size compared to standard goat breeds.

Door-In-The-Face Technique

A persuasion strategy whereby a large, unreasonable request is made first with the expectation of being refused, followed by a smaller, more reasonable request.

Foot-In-The-Door Technique

A persuasion strategy involving getting a person to agree to a small request as a precursor to making a larger request.

Foot-In-The-Door Phenomenon

A psychological tactic wherein agreeing to a small request increases the likelihood of agreeing to a larger request later.