The Table Below Shows Units of Wheat and Cloth Produced

question 90

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-Refer to Table 20.1. Which of the following assumptions hold true for the example?

• A)The goods are produced by using different factors of production.
• B)Labor productivity alone determines the comparative advantage for both countries.
• C)Both the countries will produce and export wheat and cloth.
• D)Both the countries have identical factor endowments.
• E)The taste and preference of the consumers are dissimilar in the two countries.

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Definitions:

Accommodation

The process by which the eye's lens changes shape to focus on near or distant objects, or in psychology, altering one's beliefs to make them compatible with reality.

Assimilation

A cognitive process where individuals integrate new information into existing knowledge structures or schemas.

Schema

A cognitive framework or concept that helps organize and interpret information in the world around us.

Structure

The arrangement or organization of components within a system or the manner in which something is built or organized.