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:

Team Approach

A strategy that relies on collaboration and collective effort among group members to achieve goals.

Natural Physical

Refers to phenomena or processes that occur in the natural world and involve physical properties.

Mental Reach

The extent of one's cognitive abilities to understand, conceive, and implement complex ideas and strategies.

Technology

The use of scientific insights for pragmatic objectives, particularly within the industrial sector.