If the opportunity cost of producing wheat in Canada is four buffalo and the opportunity cost of producing wheat in the U.S. is seven sheep then we know that
a. four buffalo must trade for seven sheep
b. seven buffalo must trade for three sheep
c. we have insufficient information to determine anything about their trade
d. the U.S. should specialize in wheat
e. Canada should specialize in wheat
C
Economics
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When many substitutes exist for a good, demand will be
A) elastic. B) unit-elastic. C) inelastic. D) perfectly unit-elastic.
Economics
Assume it takes 10 units of labor to produce 4 units of output. When the price of labor is $6 per unit and fixed costs equal $60, what is the total cost of those 4 units of output?
A) $60 B) $70 C) $120 D) $84
Economics