Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce either 25 units of wheat or 5 units of fish per year. There are 10 workers in each country. Political pressure from the fish lobby in Farmland and from the wheat lobby in Boatland has prevented trade between the two countries on the grounds that cheap imports would kill the fish industry in Farmland and the wheat industry in Boatland. As a result, Boatland produces and consumes 25 units of wheat and 125 units of fish per year while Farmland produces and consumes 125 units of wheat and 25 units of fish per year. If the political pressures were overcome and trade was to occur, each country would completely specialize in the product in which it has a comparative advantage. If trade were to occur, the combined output of the two countries would increase by
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that a worker in Boatland can produce either 5 units of wheat or 25 units of fish per year, and a worker in Farmland can produce ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares of GE common stock that Adams had purchased in February for $37,000 as an investment.
Answers (2)
What statement about primary and secondary markets is true? A. Primary markets include assets that can only be redeemed by the original holder. B. Secondary markets include assets that can only be redeemed by the original holder. C.
Answers (1)
Managers at the British company Tesco sold the Fresh & Easy U. S. grocery store chain after comparing returns from that division to those from Tesco's other divisions around the world and determining that the U. S.
Answers (1)
A student would like to buy cross-over SUV from a local dealer, but she thinks the payments will be too high. Marketing does not occur in this situation becauseA. two or more parties have unsatisfied needs. B.
Answers (1)
Identify which of the following statements are true for the corporate form of organization. 1. Ownership rights cannot be easily transferred. 2. Owners have unlimited liability for corporate debts. 3.
Answers (2)
New Questions in Business
n a company's merit pay program, an individual's compa-ratio represents the individual's pay relative to company's average pay for that position. the individual's worth versus that of others in the organization.
Answers (1)
Some interview questions are designed to rattle you to see how you deal with stress. True or false.
Answers (2)
Organizational culture consists of three levels: Select one: a. assumptions, orientations, and beliefs. b. beliefs, values, and artifacts. c. artifacts, assumptions, and beliefs. d. assumptions, artifacts, and values.
Answers (1)
What term refers to a set amount of money kept in the cash register to make change with? A. Excess cash B. Standard cash stock C. Cash drop D. Cash float
Answers (1)
Torres travel's stockholders' equity at the beginning of march 2014 was $200,000. during the month, the company earned net income of $50,000 and paid dividends of $10,000. at the end of march 2014, what is the amount of stockholders' equity?
Answers (1)