Multiple Choice
In Samoa the opportunity cost of producing 1 coconut is 4 pineapples, while in Guam the opportunity cost of producing 1 coconut is 5 pineapples. In this situation:
A) if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
B) Guam will be better off if it exports coconuts and imports pineapples.
C) both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
D) mutually beneficial trade cannot occur.
Correct Answer:

Verified
Correct Answer:
Verified
Q71: Protectionist legislation is often passed because:<br>A)employers in
Q72: Why would a new limit on trade
Q73: Which of the following is false with
Q74: Iceland can produce 32 units of food
Q75: Which of the following is an argument
Q77: If a country begins allowing free international
Q78: Exhibit 18-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 18-4
Q79: When a country allows trade and becomes
Q80: If nations begin to expand their specialization
Q81: Some nations that seek to produce all