Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. Mutually beneficial terms of trade between Russia and Panama would be:
A. 1 hat for 2 gloves.
B. 1 glove for 6 hats.
C. 5 gloves for 3 hats.
D. 1 hat for 1 glove.
Answer: D
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The problem of scarcity: a. exists because resources are limited relative to wants
b. exists because resources are unlimited relative to wants. c. can be eliminated through appropriate government intervention into markets. d. does not exist in communist societies.
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Which of the following is true at the point where diminishing returns set in?
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