Consider a world of two countries facing opportunity costs and producing only wheat and cloth. In one hour, residents of Country A can produce a maximum of either 1 unit of wheat or 0.5 unit of cloth,
whereas residents of Country B can produce a maximum of either 0.3 unit of wheat or 0.4 unit of cloth. Country B should export
A) wheat and cloth; country A should not export anything.
B) wheat and country A should export cloth.
C) nothing and country A should export both wheat and cloth.
D) cloth and country A should export wheat.
D
You might also like to view...
Entrepreneurship is
A. the financial capital necessary to launch a new business. B. the talent to develop new products and processes and to organize production to make goods and services available. C. unskilled labor. D. the capital resources used to produce goods and services.
A series of bank runs in a country should have no effect on M1 as money simply moves from checking deposits to currency
Indicate whether the statement is true or false
Accounting profit is usually larger than economic profit.
Answer the following statement true (T) or false (F)
Price elasticity of demand is defined as
a. slope divided by price. b. percentage change in price divided by percentage change in quantity demanded. c. percentage change in quantity demanded divided by percentage change in price. d. the inverse of the price elasticity of supply.