Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat
Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of fabric or 12 bushels of wheat. Based on this information A) beneficial trade is absolutely impossible between the two countries.
B) the United States will benefit from trading but Japan will not.
C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric.
D) Japan should specialize in both products.
C
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An import tariff will have what effect on price and quanititly in the domestic market for the good?
a. increase; increase b increase; decrease c. decrease; increase d. decrease; decrease e. decrease; no change
When indifference curves are bowed inward, the marginal rate of substitution is
a. the same at all points along an indifference curve. b. increasing as the consumer moves to the right along an indifference curve. c. decreasing as the consumer moves to the right along an indifference curve. d. constant.