Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Once free trade is allowed, Canada will produce
A) no clothing.
B) 10 units of clothing.
C) 20 units of clothing.
D) 5 units of clothing.
B
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The structural deficit or surplus
a. shows the government where to make cuts in expenditures to follow the balanced budget requirement. b. reveals the complicated structure underlying government spending and tax policy. c. is the hypothetical deficit or surplus under current fiscal policies if the economy were operating near full employment. d. includes all government budgets-federal, state, and local.
Zero bound refers to a situation when inflation rates are at or very near zero in an economy
a. True b. False Indicate whether the statement is true or false
The most successful region of transition
a. Central Europe b. Russia c. Central Asia d. Belarus e. Afghanistan
The problems of thin markets can be addressed by:
A. guaranteed price matching. B. increasing the number of sellers in the market. C. imposing price ceilings. D. warranties and repair guarantees.