Production Possibility Schedules for Two South Pacific Island NationsKiribatiTuvaluMangoesCoconutsMangoesCoconuts30001,20002004008001,2001008004002,40001,20003,600Which of the following statements is true?
A. Only Kiribati will benefit from trade with Tuvalu.
B. No gains from trade are possible for either Kiribati or Tuvalu.
C. Only Tuvalu will benefit from trade with Kiribati.
D. Gains from trade are possible for both countries.
Answer: D
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a. 0.52 b. 0.5 c. 0.34 d. 0.1
Refer to the scenario above. What is Sarah's opportunity cost of producing one greeting card?
A) 0.33 earrings B) 0.5 earrings C) 1 earring D) 3 earrings
An example of a supply shock could be ________
A) a technological innovation B) a natural disaster C) an oil price increase D) all of the above E) none of the above