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.
Which policy would be most effective to increase Grand Coast's comparative advantage over Toland?
- A. Raise taxes on factories and mills
- B. Encourage more workers to pursue fishing
- C. Maintain spending on infrastructure projects
- D. Improve technology used to produce timber
Correct Answer & Rationale
Correct Answer: B
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Encouraging more workers to pursue fishing enhances Grand Coast's comparative advantage by capitalizing on its natural resources and existing industry strengths. This shift allows for specialization, leading to increased efficiency and production in fishing, where Grand Coast may already excel compared to Toland. Raising taxes on factories and mills (A) could deter investment and reduce manufacturing output, weakening economic competitiveness. Maintaining spending on infrastructure projects (C) may improve overall economic conditions but does not directly target enhancing comparative advantage. Improving technology for timber production (D) could be beneficial but may not align with Grand Coast's most advantageous industries compared to fishing.
Other Related Questions
What does it mean if a bank's advertisement for a certificate of deposit (CD) indicates a 4% APY?
- A. The CD matures at the rate of 4% each year.
- B. Only 4% of the CD's value can be withdrawn in any given year.
- C. You will pay 4% of the CD's value each year in service fees.
- D. The CD will earn 4% interest each year that is then added to the CD's balance.
Correct Answer & Rationale
Correct Answer: D
An advertisement indicating a 4% APY (Annual Percentage Yield) signifies that the CD will earn 4% interest annually, which is compounded and added to the CD's balance. Option A misinterprets APY; it does not refer to maturity but to interest earnings. Option B incorrectly suggests a withdrawal limit based on a percentage, which is not how CDs function. Option C mistakenly implies that there are service fees amounting to 4%, which is unrelated to APY. Understanding APY is crucial for evaluating the growth potential of a CD investment.
An advertisement indicating a 4% APY (Annual Percentage Yield) signifies that the CD will earn 4% interest annually, which is compounded and added to the CD's balance. Option A misinterprets APY; it does not refer to maturity but to interest earnings. Option B incorrectly suggests a withdrawal limit based on a percentage, which is not how CDs function. Option C mistakenly implies that there are service fees amounting to 4%, which is unrelated to APY. Understanding APY is crucial for evaluating the growth potential of a CD investment.
After the Revolutionary War, the western border of the United States was the
- A. Mississippi River.
- B. Gulf of Mexico.
- C. Rocky Mountains.
- D. Great Lakes.
Correct Answer & Rationale
Correct Answer: A
The western border of the United States after the Revolutionary War was defined by the Mississippi River, which served as a natural boundary facilitating westward expansion. Option B, the Gulf of Mexico, is incorrect as it is located to the south, not marking the western border. Option C, the Rocky Mountains, is also inaccurate; while they are a significant geographical feature, they were not recognized as a border at that time. Option D, the Great Lakes, pertains to the northern boundary and does not represent the western limit. Thus, the Mississippi River accurately reflects the western boundary post-war.
The western border of the United States after the Revolutionary War was defined by the Mississippi River, which served as a natural boundary facilitating westward expansion. Option B, the Gulf of Mexico, is incorrect as it is located to the south, not marking the western border. Option C, the Rocky Mountains, is also inaccurate; while they are a significant geographical feature, they were not recognized as a border at that time. Option D, the Great Lakes, pertains to the northern boundary and does not represent the western limit. Thus, the Mississippi River accurately reflects the western boundary post-war.
New evidence is discovered for a case in which the person charged with the crime has already been found 'not guilty.' Which amendment prohibits the state from trying that person again on the same charges?
- A. Amendment 4
- B. Amendment 5
- C. Amendment 6
- D. Amendment 10
Correct Answer & Rationale
Correct Answer: B
The Fifth Amendment includes the protection against double jeopardy, which prohibits an individual from being tried again for the same crime after a verdict of not guilty. This principle ensures that once a person has been acquitted, they cannot face the same charges again, regardless of new evidence. Option A, the Fourth Amendment, deals with protection against unreasonable searches and seizures, which is unrelated to criminal trials. Option C, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to a speedy trial and an impartial jury, but does not address double jeopardy. Option D, the Tenth Amendment, reserves powers to the states and the people, but does not pertain to criminal prosecution rights.
The Fifth Amendment includes the protection against double jeopardy, which prohibits an individual from being tried again for the same crime after a verdict of not guilty. This principle ensures that once a person has been acquitted, they cannot face the same charges again, regardless of new evidence. Option A, the Fourth Amendment, deals with protection against unreasonable searches and seizures, which is unrelated to criminal trials. Option C, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to a speedy trial and an impartial jury, but does not address double jeopardy. Option D, the Tenth Amendment, reserves powers to the states and the people, but does not pertain to criminal prosecution rights.
A police department allows a person suspected of committing a crime to refuse to answer questions asked by the investigating officer. Which amendment protects this right?
- A. Amendment 1
- B. Amendment 4
- C. Amendment 5
- D. Amendment 6
Correct Answer & Rationale
Correct Answer: C
The Fifth Amendment protects individuals from self-incrimination, allowing a person suspected of a crime to refuse to answer questions posed by law enforcement. This right ensures that individuals cannot be compelled to provide testimony that could implicate them in a crime. Option A, the First Amendment, pertains to freedoms of speech, religion, press, assembly, and petition, but does not address self-incrimination. Option B, the Fourth Amendment, protects against unreasonable searches and seizures, but does not relate to questioning. Option D, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to counsel and a fair trial, but does not specifically cover the right to remain silent during questioning.
The Fifth Amendment protects individuals from self-incrimination, allowing a person suspected of a crime to refuse to answer questions posed by law enforcement. This right ensures that individuals cannot be compelled to provide testimony that could implicate them in a crime. Option A, the First Amendment, pertains to freedoms of speech, religion, press, assembly, and petition, but does not address self-incrimination. Option B, the Fourth Amendment, protects against unreasonable searches and seizures, but does not relate to questioning. Option D, the Sixth Amendment, guarantees rights related to criminal prosecutions, such as the right to counsel and a fair trial, but does not specifically cover the right to remain silent during questioning.