Assume There Are Two Nations Each Producing Two Goods, X

question 33

Multiple Choice

Assume there are two nations each producing two goods, X and Y, and they only trade with each other. Which of the following is identical for both nations if they engage in free trade?

• A) the equilibrium relative price of X
• B) the opportunity cost of X
• C) the opportunity cost of producing X and the opportunity cost of producing Y
• D) both the equilibrium relative price of X and the opportunity cost of X

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Definitions:

Legal Ethical Rules

Guidelines that govern the professional conduct of lawyers and legal practitioners to ensure integrity and fairness.

Legal Liability

The legal responsibility one party has for the consequences of their actions or omissions, which may result in harm or loss to another party and require compensation.

Inadequate Research

A situation where the level of investigation or study into a subject is insufficient to meet the required standards or objectives.

Duty of Competence

The obligation for professionals, especially in legal and medical fields, to maintain a reasonable level of skill and knowledge while serving their clients or patients.