At which of the following prices would both Jamaica and Norway gain from trade with each other?

a) 1 radio for 1 cooler
b) 1 radio for 4 coolers
c) 1 radio for 10 coolers
d) Jamaica and Norway would both gain from trade at all of the above prices.

Answer: b) 1 radio for 4 coolers

Economics

You might also like to view...

According to the law of demand, what happens when prices go down?

a. Demand increases. b. Quantity demanded increases. c. Demand decreases. d. Quantity demanded decreases.

Economics

Potential GDP measures the capacity of the economy in terms of the actual goods and services to be produced

Indicate whether the statement is true or false

Economics