Maximum Feasible Hourly Production Rates of EitherProduct A or Product B Using All Available ResourcesProductCountry XCountry YA48B44 Refer to the above table. Assuming constant opportunity costs
A. both countries will be willing to engage in trade at a rate of exchange of 3 units of product A for 1 unit of product B.
B. both countries will be willing to engage in trade at a rate of exchange of 1.5 unit of product A for 1 unit of product B.
C. both countries will be willing to engage in trade at a rate of exchange of 0.3 unit of product A for 1 unit of product B.
D. neither country will be willing to engage in trade at any rate of exchange of product A for product B.
Answer: B
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At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee
On the way to the shop, Hannah finds an extra $2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means A) doughnuts are an inferior good and coffee is a normal good for Hannah. B) doughnuts are a normal good and coffee is an inferior good for Hannah. C) doughnuts and coffee are normal goods for Hannah. D) doughnuts and coffee are inferior goods for Hannah.
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