Each nation can produce beans and rice
TOPIC WHAT IS ECONOMICS? SUMMARY
WHAT IS ECONOMICS?
buying and selling.
scarcity and choices.
What Is Economics? | Acrobatiq g |
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choices that societies must make, in a purposeful way, to utilize and distribute resources.
The production possibility curve relies on which of the following assumptions?
The labor force is growing every day.
Technology is improving every day.
All resources are fully utilized.
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Question 6 of 15
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Assume Mexico and the United States have labor forces of equal size (for simplicity), and operate in an environment of constant costs. Each nation can produce beans and rice, but at different efficiency levels. Assume pre-specialization levels as follows:
U.S.: (Pre-specialization) 12 rice, 12 beans; (post-specialization) 24 beans, 0 rice
2R = 1B
1R = 1B
cost, both parties will gain from trade.
Correct. For both parties to gain from trade, the cost of an
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