The table above gives the production possibilities frontier for two countries, Anaconda and Bear. This table shows that
A) when Anaconda and Bear specialize and trade, Anaconda should specialize in the production of shoes.
B) when Anaconda and Bear specialize and trade, Anaconda should produce at its production point E.
C) Anaconda has an absolute advantage in the production of corn and shoes.
D) Bear can consume no more than 2 bushels of corn and 700 pairs of shoes.
E) Bear is unable to gain from trade with Anaconda.
B
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Which of the following is not a consequence of hyperinflation?
A) The price level grows in excess of hundreds of percentage points per year. B) Hyperinflation causes an economy to suffer slow growth. C) Money loses value so rapidly that individuals and firms stop holding it. D) Money's function as a medium of exchange is enhanced.
Which of the following will change only the quantity demanded of oranges?
A) an increase in the population B) a change in the price of tangerines C) a change in the price of oranges D) a decrease in the taste and preferences for oranges