If Country a Exports Good X to Country B and Country

question 1

Multiple Choice

If country A exports good X to country B and country B exports good Y to country A, it is most likely that

• A) A has an absolute advantage in the production of good X.
• B) B has a comparative advantage in the production of good Y.
• C) the opportunity cost of domestic production of good Y for country A is lowered with trade.
• D) B is producing less of good Y than in the no-trade case.

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Definitions:

Telegraphic Speech

A stage in language acquisition during early childhood, where speech is concise and contains only essential content words, omitting smaller function words and inflections.

Infant-Directed Speech

A speech pattern used by adults when talking to babies, characterized by higher pitch, slower rate, and exaggerated intonation.

Satisfaction

The feeling of pleasure or fulfillment that comes from achieving one's goals or desires.

Economic Resources

The assets, capital, and means of production that are used to create goods and services within an economy.