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. Which of the following would be mutually beneficial terms of trade between Karl and Adam?
a. 1 ton of apples per 2 1/2 tons of oranges
b. 1 ton of apples per 1 1/2 tons of oranges
c. 1 ton of apples per 1/4 ton of oranges
d. 1 ton of apples per 1/5 ton of oranges
b
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Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 10 percent per year while its population grew 8 percent annually
Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 6 percent annually. If the forecasters are correct, which of the following will be TRUE? A) The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent. B) The annual rate of growth of per capita real GDP will increase from 2 percent to 6 percent. C) The annual rate of growth of per capita real GDP will increase from 2 percent to 4 percent. D) The annual rate of growth of per capita real GDP will decline from 4 percent to 2 percent.
Which of the following has a currency board?
A) Hong Kong B) The United States C) Mexico D) China
The demand for a product is more elastic
a. When it has few substitutes b. In the long-run c. When the expenditure on the product represent a small portion of the budget d. When the product is broadly defined
Based on historical data, which of the following tended to be most unstable over time?
A. the average propensity to save B. real investment spending C. real saving D. real consumption spending