Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce ei ther 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initi ated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Sylvania will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat.
b. 40 units of corn and 30 units of wheat.
c. 40 units of corn and 20 units of wheat.
d. 10 unites of corn and 40 units of wheat.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce ei ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Two sisters operate a bed and breakfast on the coast of Maine. As customers make reservations they are required to pay cash in advance equal to one-half of the rate for their stay.
Answers (1)
An article in the Economist about Venezuela stated: "The economy is in such an appalling state, and inflation is so high, that Venezuelans greeted a rise of 60% in the minimum wage on May 1st with shrugs of 'so what?'.
Answers (1)
If commodity money was still used nowadays, what items do you think would be used as a medium of exchange? Why?
Answers (1)
Where does it say that it's considered contrary to public policy for contractors to pay a commission to someone that's contingent on that person getting the contractor a government contract?
Answers (1)
Why is credibility important to convey to your customer?
Answers (1)
New Questions in Business
A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $22.55; however, many investors believe the company should be valued at $30.25 per share. If the underwriter charges a $2.
Answers (1)
Grandmark printing pays $2,000 rent to the landlord of the building where its facilities are located. how does this transaction affect the accounting equation for grandmark
Answers (1)
Why is it important to use care when creating graphics for multicultural audiences?
Answers (1)
If demand for farmer john's maple syrup is inelastic, then when farmer john raises the price of maple syrup, his total revenue will
Answers (1)
Members should use the AICPA conceptual framework for independence to: a) come to different conclusions than the interpretations of the code of professional conduct. b) Evaluate independence matters not addressed in the code of professional conduct.
Answers (1)