Refer to the graphs and information below. If Italy and Greece should open up trade with each other, which of the following terms of trade is mutually beneficial?
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below.
A. 1 ton of chemicals = 1 ton of steel
B. 2 tons of chemicals = 1 ton of steel
C. 5 tons of chemicals = 2 tons of steel
D. 9 tons of chemicals = 5 tons of steel
D. 9 tons of chemicals = 5 tons of steel
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The more inelastic the consumer demand for the final product, the
A) greater will be the economic profit in a competitive market. B) greater the impact on employment from a change in the wage rate. C) more inelastic the demand for labor producing the product. D) more responsive the output demand to a change in the price of labor.
The contribution to total revenues coming from the next worker hired is
A) marginal product. B) marginal revenue product. C) total product. D) total revenues.