Assume That Two Countries (Home and Foreign) Each Produce Two

question 23

Multiple Choice

Assume that two countries (Home and Foreign) each produce two goods (corn and wheat) under constant cost production. Home produces 1/2 ton of corn or 1 ton of wheat with a day of labor. Foreign produces 1 ton of corn and 1/2 ton of wheat. Suppose that, after trade occurs, the international price actually becomes 1.5 tons of wheat per ton of corn. Which of the following statements is true?

• A) Home will gain from trade but Foreign will not.
• B) Foreign will gain from trade but Home will not.
• C) Neither home nor Foreign will gain from trade.
• D) Both Home and Foreign will gain from trade.

---

Definitions:

Concrete Class

A class in object-oriented programming that can be instantiated, as opposed to an abstract class, and provides implementations for all its methods.

Abstract Methods

Abstract methods are methods in Java that are declared without an implementation in an abstract class, and must be implemented by subclasses.

Downcasting

The process of converting a reference of a parent class to a reference of a child class in the object hierarchy.

Ancestor Class

A class from which another class is derived, either directly or through one or more levels of inheritance.