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 |
A) 1 gun costs 3 pounds of butter.
B) 3 guns cost 1 pounds of butter.
C) 1 gun costs 2 pounds of butter.
D) 2 guns cost 1 pounds of butter.
Correct Answer:
Verified
Correct Answer:
Verified
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