Which of the following is an outcome of trade depicted in Exhibit 4?
a. Through trading with Calvin, Wendy’s food production has declined from 10 pounds to 7 pounds per day.
b. The exchange has been unfair to Wendy because a pound of her food is more valuable than a pound of Calvin’s cloth.
c. The exchange has been unfair to Calvin because he has only 3 pounds of food, whereas Wendy has 7 pounds.
d. Wendy and Calvin each enjoy a larger combination of food and cloth than they could have produced alone.
d. Wendy and Calvin each enjoy a larger combination of food and cloth than they could have produced alone.
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At the end of the populist cycle, workers are better off than they were before the populist cycle began in terms of real wages and job creation
Indicate whether the statement is true or false
In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate b. each firm is ignorant of the market wage rate c. the demand for labor is a derived demand d. each firm hires a very small portion of the labor services available e. the wage rate is regulated by the government