Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. If the exchange rate between apples and oranges in international markets is 1 ton of oranges per 3 tons of apples:
a. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export oranges to other
countries.
b. Karl and Adam will not trade apples and oranges with one another, since both will specialize in and export apples to other countries.
c. Karl and Adam will trade apples and oranges with one another.
d. Karl and Adam will not specialize or engage in international trade.
a
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In the context of portfolio diversification,
A) investors are compensated for diversifiable risk in the portfolio. B) prudent investors should hold about three to five stocks in their portfolio. C) a stock index mutual fund is a financial intermediary that offers small investors a way to participate in the performance of the stock market as a whole. D) financial intermediaries make it more difficult to be diversified.
Which of the following variables is measured only at a particular point in time and not over different time periods?
a. The unemployment rate b. Consumer income c. The federal government's debt d. The federal government's budget deficit e. Total expenditure
Which of the following situations can lead to a winner's curse?
a. A bid which is won by multiple bidders but fails to cover the expectations of the seller. b. A win which makes a player over-enthusiastic about further gambles. c. An overoptimistic bid which helps the bidder to win but fails to cover his costs. d. A win which makes the player risk-averse toward future gambles.
Renewable energy sources provided _____ of U.S. energy needs as of 2013.
A. almost 100 percent B. 20.8 percent C. 9.4 percent D. 14.2 percent