Use the Following to Answer Question

question 241

Multiple Choice

Use the following to answer question :
Figure: The Gains from International Trade
-(Figure: The Gains from International Trade) Look at the figure The Gains from International Trade. If each country specializes completely in the good for which it has a comparative advantage, each country must trade _____ computer(s) for _____ box of roses to consume at combination C'.

• A)1; 0.5
• B)2; 1
• C)0.5; 1
• D)1; 1

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Definitions:

Expected Income

The amount of money one anticipates earning over a specific period, considering various factors like salary, investments, and other income sources.

Probability

An indicator of the probability that a particular event will happen, denoted as a value ranging from 0 to 1.

Certain Income

refers to money or revenue that is guaranteed or highly likely to be received, with minimal risk of variation or loss.

Fair Insurance Policy

Describes an insurance contract that provide coverage at reasonable, transparent, and equitable terms for both parties.