Suppose that Greece and Austria both produce rye and cheese. Greece's opportunity cost of producing a pound of cheese is 4 bushels of rye while Austria's cost of producing a pound of cheese is 10 bushels of rye. By comparing the opportunity of Cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and .Suppose that Greece and Austria consider trading cheese and rye with each other. Greece can gain from specialization and trade as long as it receives more than of rye for each pound of cheese it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than of cheese for each bushel of rye it exports to Greece.

Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of rye) would allow both Austria and Greece to gain from trade?

a. 9 bushels of rye per pound of cheese
b. 2 bushels of rye per pound of cheese
c. 1 bushel of rye per pound of cheese
d. 7 bushels of rye per pound of cheese

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.