Solved

Consider the No-Trade Input/output Situation Presented in the Following Table

Question 90

Multiple Choice

Consider the no-trade input/output situation presented in the following table and graph for South and North Carolina.Assume that free trade is legal. Input/Output without Trade

     country  
  south carolina   north carolina  total
 I. total potintal output      
 (lbs. or yard; 000,000s)      
guns 500  250  750
butter  1,000  750  1,750
 II. consumption      
  (lbs. or yard; 000,000s)      
guns 250 200  450
butter  500 150   650
How much does it cost for North Carolina to produce one gun?


A) 3 pounds of butter
B) .33 pounds of butter
C) 1.33 pounds of butter
D) none of the options

Correct Answer:

verifed

Verified

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

Related Questions

Q85: The emergence of global financial markets is

Q86: Consider a dentist and a 14-year old

Q87: Country A can produce 10 yards of

Q88: Consider the no-trade input/output situation presented in

Q89: If one country is twice the size

Q91: Recently,financial markets have become highly integrated.This development<br>A)allows

Q92: The Japanese automobile company Honda decided to

Q93: In David Ricardo's theory of comparative advantage,<br>A)international

Q94: Which is growing at a faster rate,foreign

Q95: As capital markets are becoming more integrated,the