Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 8 yards of fabric or 4 bushels of wheat
Maximum feasible production levels if all resources are utilized in Japan are either 3 yards of fabric or 6 bushels of wheat. Based on this information A) beneficial trade is absolutely impossible between the two countries.
B) the United States will benefit from trading but Japan will not.
C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric.
D) both nations will gain from specialization and trade, with the United States exporting fabric and Japan exporting wheat.
D
You might also like to view...
The marginal cost curve crosses
a. only the average variable cost curve at its bottom. b. both the average cost curve and the average variable cost curve at their bottoms. c. only the average cost curve at its bottom. d. the marginal product curve at its maximum.
Common property resources ____ rival ____ excludable
a. are, and are b. Are, but are not c. Are not, but are d. Are not, and are not
Contagion is:
A. the rapid contraction of investment spending that occurs when interest rates are increased by the Federal Reserve. B. the rapid inflation that results from the printing of money. C. the failure of one bank spreading to other banks through depositors withdrawing of funds. D. the phenomenon that if one bank loan defaults it will cause other bank loans to default.
The human tendency to believe only those data that agree with one's preconceptions and ignore other data that contradict the preconceptions is called:
A. Confirmation bias B. Self-serving bias C. Overconfidence effect D. Availability heuristic