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The Table Below Shows Units of Wheat and Cloth Produced

question 110

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 34.1 The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 34.1   Refer to Table 34.1.Which of the following assumptions holds true for the example? A) The goods are produced by using different factors of production B) Labor productivity alone determines the comparative advantage C) Each of the countries will produce and export wheat and cloth D) Both the countries have identical factor endowments E) The taste and preference of the consumers are dissimilar in the two countries Refer to Table 34.1.Which of the following assumptions holds true for the example?

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Definitions:

Nationalization

The process by which governments take private assets into public ownership, usually key industries or resources.

State-Owned Enterprise

A business entity that is owned and operated by the government in order to provide goods or services to the public.

Environmental Needs

Environmental needs refer to the essential conditions and resources required for ecosystems and human life to thrive, including clean air, water, soil, and suitable climatic conditions.

Indirect Benefits

Advantages that are not directly attributable to a specific action but result from it.

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