Trade and Opportunity Costs
This passage and table describe the opportunity costs faced by two countries.
1 The countries of Grand Coast and Toland are trading partners. The two main goods
traded are timber and fish. Every year the ministers of trade from each country
attend an international conference to discuss issues related to foreign trade and
decide how each country should specialize. The table provides economic data for
one year.
A drought strikes Toland and decreases the amount of fish caught from 8 units to 2 units. How will this change affect trade negotiations for the following year?
- A. The countries should maintain the existing agreement.
- B. Both countries should produce both goods.
- C. Toland should specialize in the production of timber.
- D. Toland should specialize in the production of fish.
Correct Answer & Rationale
Correct Answer: C
A decrease in fish catch due to drought shifts Toland's production capabilities. Specializing in timber (Option C) allows Toland to focus on a resource that can still be produced effectively, potentially increasing trade value. Maintaining the existing agreement (Option A) ignores the new realities of reduced fish availability, which could lead to imbalances. Producing both goods (Option B) may spread resources too thin, hindering efficiency. Specializing in fish (Option D) is unwise, as the drought has drastically reduced fish availability, making it impractical to rely on this sector.
A decrease in fish catch due to drought shifts Toland's production capabilities. Specializing in timber (Option C) allows Toland to focus on a resource that can still be produced effectively, potentially increasing trade value. Maintaining the existing agreement (Option A) ignores the new realities of reduced fish availability, which could lead to imbalances. Producing both goods (Option B) may spread resources too thin, hindering efficiency. Specializing in fish (Option D) is unwise, as the drought has drastically reduced fish availability, making it impractical to rely on this sector.
Other Related Questions
What is the effect of a debit on a person's checking account?
- A. The account's balance increases.
- B. The account's balance decreases.
- C. The account's interest rate increases.
- D. The account's interest rate decreases.
Correct Answer & Rationale
Correct Answer: B
A debit reduces the available funds in a checking account, leading to a decrease in the account's balance. Therefore, option B accurately reflects this effect. Option A is incorrect since a debit cannot increase the balance; it signifies money being spent or withdrawn. Options C and D relate to interest rates, which are unaffected by debit transactions in a checking account. Interest rates typically depend on the account type and bank policies, not on individual transactions like debits. Hence, they do not apply to the effect of a debit on the account balance.
A debit reduces the available funds in a checking account, leading to a decrease in the account's balance. Therefore, option B accurately reflects this effect. Option A is incorrect since a debit cannot increase the balance; it signifies money being spent or withdrawn. Options C and D relate to interest rates, which are unaffected by debit transactions in a checking account. Interest rates typically depend on the account type and bank policies, not on individual transactions like debits. Hence, they do not apply to the effect of a debit on the account balance.
The purpose of these five amendments is to
- A. help the government operate efficiently.
- B. help people know how to be good citizens.
- C. protect citizens from criminals.
- D. protect citizens from the government.
Correct Answer & Rationale
Correct Answer: D
The five amendments in question primarily aim to safeguard individual rights against potential government overreach. They establish limits on governmental power, ensuring that citizens retain personal freedoms and legal protections. Option A is incorrect as these amendments focus on individual rights rather than government efficiency. Option B misinterprets the primary intent; while good citizenship is important, the amendments do not serve as a guide for civic behavior. Option C is also misleading, as the amendments are designed to protect citizens from government actions, not criminal activities. Thus, the focus remains on limiting government power to ensure personal liberties.
The five amendments in question primarily aim to safeguard individual rights against potential government overreach. They establish limits on governmental power, ensuring that citizens retain personal freedoms and legal protections. Option A is incorrect as these amendments focus on individual rights rather than government efficiency. Option B misinterprets the primary intent; while good citizenship is important, the amendments do not serve as a guide for civic behavior. Option C is also misleading, as the amendments are designed to protect citizens from government actions, not criminal activities. Thus, the focus remains on limiting government power to ensure personal liberties.
Based on the obituary, what was Taylor's first job?
- A. Gang boss
- B. Scientist
- C. Engineer
- D. Manager
Correct Answer & Rationale
Correct Answer: A
Taylor's first job as a gang boss reflects an early involvement in leadership and organization, likely in a challenging environment. This position often requires strong management skills and the ability to coordinate team efforts, which can be foundational for future roles. Option B, scientist, is incorrect as it implies a formal education and specialized training that is not indicated in the obituary. Option C, engineer, suggests a technical background that does not align with the described early career path. Lastly, option D, manager, while related, does not capture the specific context of Taylor's initial role, which was more informal and associated with a gang structure.
Taylor's first job as a gang boss reflects an early involvement in leadership and organization, likely in a challenging environment. This position often requires strong management skills and the ability to coordinate team efforts, which can be foundational for future roles. Option B, scientist, is incorrect as it implies a formal education and specialized training that is not indicated in the obituary. Option C, engineer, suggests a technical background that does not align with the described early career path. Lastly, option D, manager, while related, does not capture the specific context of Taylor's initial role, which was more informal and associated with a gang structure.
Different states set different minimum age requirements for getting a driver's license. Which amendment allows this?
- A. Amendment 1
- B. Amendment 5
- C. Amendment 6
- D. Amendment 10
Correct Answer & Rationale
Correct Answer: D
The Tenth Amendment reserves powers not delegated to the federal government for the states. This includes the authority to regulate matters such as driver's licenses, allowing each state to establish its own minimum age requirements. Option A (Amendment 1) protects freedoms like speech and religion, unrelated to state licensing powers. Option B (Amendment 5) addresses rights in criminal cases and due process, not state regulations on driving. Option C (Amendment 6) focuses on the rights of criminal defendants, which does not pertain to licensing authority. Thus, the Tenth Amendment is the foundation for state control over driver's license regulations.
The Tenth Amendment reserves powers not delegated to the federal government for the states. This includes the authority to regulate matters such as driver's licenses, allowing each state to establish its own minimum age requirements. Option A (Amendment 1) protects freedoms like speech and religion, unrelated to state licensing powers. Option B (Amendment 5) addresses rights in criminal cases and due process, not state regulations on driving. Option C (Amendment 6) focuses on the rights of criminal defendants, which does not pertain to licensing authority. Thus, the Tenth Amendment is the foundation for state control over driver's license regulations.