Macland can produce 210 sweaters or 30 airplanes. Microland can produce 150 sweaters or 10 airplanes. Since Macland can produce more than Microland,
a. Macland will benefit from trading, but Microland will not as it does not have an absolute advantage.
b. neither country will benefit from trade because Macland has an absolute advantage in both goods.
c. both Macland and Macroland will benefit as the opportunity costs are different.
d. Microland will benefit, but Macroland will not because it has an absolute advantage in both goods.
c. both Macland and Macroland will benefit as the opportunity costs are different.
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A positively sloped long-run average total cost curve means there are economies of scale
Indicate whether the statement is true or false
_________ include inflationary conditions, significant competition, high interest rates, weak economic indicators, shrinking of the money supply by the government, and the political environment.
a. Internal constraints b. External constraints c. Budgets d. Economic environments e. Balance sheets
Example: Give an example of “substitutes in production.” Explain how the products meet the economic definition of “substitutes in production.”
What will be an ideal response?
Based on Table 9.2, total savings, private plus public, is equal to
A) 3 percent of GNP. B) 18 percent of GNP. C) 16 percent of GNP. D) 20 percent of GNP.