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-(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 bushels of wheat,while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.If the two countries engage in international trade and specialize completely and if the price of 1 head of cattle equals the price of 2 bushels of wheat,world production of cattle will:
Efficiency
The extent to which resources are utilized optimally to achieve desired outcomes with minimum waste or effort.
Second Best
A concept in economics that suggests if all optimal conditions cannot be satisfied, the second-best option should be pursued.
Distortionary Tax
Taxes that cause people to alter their behavior in a way that distorts the allocation of resources from their most efficient uses.
Economic Choices
Decisions made by individuals, households, or firms regarding the allocation of scarce resources to satisfy needs and wants.
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