Econostan Can Produce a Widget at the Cost of One

question 109

Multiple Choice

Econostan can produce a widget at the cost of one thingamajig.Its trading partner can produce the same widget at a cost of two thingamajigs.

• A) Econostan should specialize in widgets and import thingamajigs.
• B) There is no advantage to trade between the two.
• C) Econostan should specialize in thingamajigs and import widgets.
• D) Econostan has a comparative advantage in producing thingamajigs.

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Definitions:

Conscious Awareness

The state of being fully alert and aware of one's environment, thoughts, and feelings, allowing for intentional thought and action.

Differential Threshold

The minimum difference in stimulation required to detect a change or difference between two stimuli.

Absolute Threshold

The smallest level of stimulus that can be detected by the sensory systems at least half the time.

Absolute Threshold

The minimum intensity of a stimulus required to be perceptibly recognized by an individual's senses.