Refer to the Above Table

question 63

Multiple Choice

Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock.

• A) U.S. residents would be willing to export cuckoo clocks, but Swiss residents would not gain from exporting movies at this rate of exchange.
• B) Swiss residents would be willing to export movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange.
• C) U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange.
• D) U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.

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Definitions:

Preoccupation

A state or condition of being excessively and disturbingly concerned with something, often to the exclusion of other considerations.

Overwhelming Feelings

Intense emotions that can overpower one's ability to cope or make rational decisions.

Adjustment

The process of adapting or becoming accustomed to a new situation or environment.

Grief

Emotional response experienced in the early phases of bereavement.