Use the Following to Answer Questions

question 135

Multiple Choice

Use the following to answer questions:
Figure: Countries A and B
-(Figure: Countries A and B) Refer to the figure regarding countries A and B. If each country allocated half of its labor force to the production of each good before trade and were to then each specialize in their comparative advantage and allocate 75 percent of its labor force to the production of that good, world production of Good X would change by _____ and the production of Good Y by _____.

• A) 40; 50
• B) 25; -5
• C) 15; -5
• D) 50; 40

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Definitions:

Primary Colours

Basic colors (red, blue, and yellow) that can be combined to produce a wide spectrum of colors but cannot be created by mixing other colors.

Perceptual Hypothesis

A theory in psychology that explains how sensory information is interpreted to form mental representations of the environment.

Trapezoid

A four-sided flat shape with at least one pair of parallel sides, often categorized in geometry.

Psychophysical Law

A concept in psychology that describes the relationship between the physical qualities of a stimulus and the perceptions they produce.