Multiple Choice
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Suppose Country B decides to specialize in tomatoes,and Country A specializes in bananas.What terms of trade would both countries agree to?
A) One tomato for one banana
B) One tomato for two bananas
C) One tomato for four bananas
D) One tomato for six bananas
Correct Answer:
Verified
Correct Answer:
Verified
Q4: Suppose that a worker in Country A
Q44: Suppose that a worker in Country A
Q45: People will choose to specialize and trade
Q46: Suppose an American worker can make 50
Q47: What drives a country's limits to acceptable
Q48: Tom and Jerry have two tasks to
Q50: Suppose that a worker in Country A
Q51: When two countries specialize and trade with
Q53: Suppose an American worker can make 20
Q54: Tom and Jerry have two tasks to