Suppose That a Worker in Cornland Can Grow Either 40

question 48

Multiple Choice

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year,and a worker in Oatland can grow either 20 bushels of corn or 5 bushels of oats per year.There are 20 workers in Cornland and 20 workers in Oatland.Which of the following statements is true?

• A)Both countries could gain from trade with each other.
• B)Neither country could gain from trade with each other because Cornland has an absolute advantage in both goods.
• C)Neither country could gain from trade with each other because neither one has a comparative advantage.
• D)Oatland could gain from trade between the two countries,but Cornland definitively would lose.

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Definitions:

Changing Environments

The dynamic nature of surroundings that require adaptation by organisms or systems.

Erikson's Theory

A psychosocial development theory outlining eight stages from infancy to adulthood, each characterized by a psychological crisis.

Feelings of Inferiority

Emotions stemming from a belief that one is less worthy or less capable than others, often influencing one's self-esteem.

Sense of Industry

A stage in Erik Erikson's theory of psychosocial development where children gain confidence through achieving tasks and competencies.