You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
If the other island's delegate offers to give you 2 fish for every 1 coconut you give them, you will:
A. accept their offer because you do not have the comparative advantage in fish.
B. refuse their offer because the opportunity cost to you of a coconut is less than 2 fish.
C. refuse their offer because the opportunity cost to you of a coconut is more than 2 fish.
D. accept their offer because you do not have an absolute advantage in fish.
Answer: C
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If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market
A) an oligopoly; interdependence B) an oligopoly; no interdependence C) an oligopoly or monopolistically competitive; interdependence D) a monopolistically competitive; no interdependence
Engel's law suggests that as income rises, the demand for food
a. rises less than proportionately b. rises more than proportionately c. rises proportionately d. falls e. none of the above
The majority of people with private health insurance get it
A. in groups. B. individually. C. along with one other person. D. at the grocery store.
In the above figure, the line labeled "MRPL" also represents the firm's
A. total physical product curve. B. marginal physical product curve. C. supply curve. D. demand curve for labor.