Suppose Zia spends her time picking berries and apples. Her production set is described by the equation , where is the number of berries and y the number of apples. Which of the following statements will be true?
a. 25 apples and 10 berries is achievable but inefficient.
b. 10 berries and 2 apples is efficient but unachievable.
c. 20 apples and 5 berries is an inefficient level of production.
d. 30 berries and 5 apples is an efficient level of production.
D
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A reason tariffs and quotas are imposed is that
A) their costs are spread among many people and their benefits are concentrated. B) their costs are concentrated and their benefits are spread among many people. C) they create net benefits in the long run. D) they reduce import dependence.
The Case of the Missing Trade refers to
A) the fact that factor trade is less than predicted by the Heckscher-Ohlin theory. B) the 9th volume of the Hardy Boys' Mystery series. C) the fact that world exports does not equal world imports. D) the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists. E) the fact that the Heckscher Ohlin theory never applies to China-U.S. trade practices.