Use the Following to Answer Question(s): Heartland and Soulland

question 6

Multiple Choice

Use the following to answer question(s) : Heartland and Soulland
Suppose that there are only two countries in the world, Heartland and Soulland.The two countries produce only two goods, corn and drill presses.At its current level of production, Heartland must give up production of 1/4 drill press to produce an additional 100 bushels of corn.Soulland must give up 1 drill press to produce an additional 100 bushels of corn.No trade now occurs between the two economies, and both economies are operating on their respective production possibilities frontiers.
-(Exhibit: Heartland and Soulland) If trade now opens up between the two economies, we can expect that:

• A) Heartland will export drill presses to Soulland and import corn from it.
• B) Heartland will export corn to Soulland and import drill presses from it.
• C) both countries will export corn and drill presses.
• D) both countries will import corn and drill presses.

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Definitions:

Disbursements Fund

A fund set aside for the payment of expenses or disbursement of funds for specific purposes as they arise.