Solved

You Are the Minister of Trade for a Small Island

Question 47

Multiple Choice

You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above. Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish. After the trade your island has a total of _____ coconuts and _____ fish. A) 150; 2,800 B) 500; 1,300 C) 150; 1,300 D) 500; 1,500 You are negotiating a deal with a neighboring island that has the following annual PPC: You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above. Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish. After the trade your island has a total of _____ coconuts and _____ fish. A) 150; 2,800 B) 500; 1,300 C) 150; 1,300 D) 500; 1,500 Refer to the figure above. Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish. After the trade your island has a total of _____ coconuts and _____ fish.


A) 150; 2,800
B) 500; 1,300
C) 150; 1,300
D) 500; 1,500

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q42: You are the Minister of Trade for

Q43: Between the U.S. and Nepal, Nepal invests

Q44: The Principle of Increasing Opportunity Costs implies

Q45: If a nation can produce a good

Q46: An inefficient point on a production possibilities

Q48: Point A on a linear production possibilities

Q49: Earth Movers & Shakers operates 3

Q50: Smith and Jones comprise a two-person

Q51: Moe divides his time between studying Physics

Q52: The core principle that is illustrated by