Use the Following to Answer Questions

question 146

Multiple Choice

Use the following to answer questions:
Figure: Computers and Books
-(Figure: Computers and Books) According to the figure, if country A produces only the good for which it has a comparative advantage and then consumes the other good by exchanging computers for books, then:

• A) country A will consume outside its PPF but country B will consume inside its PPF.
• B) country A will consume inside its PPF but country B will consume outside its PPF.
• C) both countries will consume inside their own PPFs.
• D) both countries will consume outside their own PPFs.

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Definitions:

Carrying Cost

The full expenditure of keeping stock on hand, covering expenses related to storing, managing, value reduction, and the cost of alternative opportunities forgone.

Multiple Discriminant Analysis (MDA)

Statistical technique for distinguishing between two samples on the basis of their observed characteristics.

Statistical Technique

A method or formula derived from statistical science used to analyze, interpret, and collect data.

Samples

Small portions or quantities intended to show what the whole is like.