Assuming Labour Forces of Equal Size, the Production Possibilities Curves

question 136

Multiple Choice

Assuming labour forces of equal size, the production possibilities curves below suggest that West Mudsville has:

• A)lower wages than workers in East Mudsville before trade but equal wages after trade.
• B)absolute advantage over East Mudsville for both baseballs and, baseball hats.
• C)no advantage over East Mudsville.
• D)advantage of East Mudsville for baseballs and not baseball hats.

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Definitions:

Presentment

The act of presenting an instrument to the party liable on the instrument to collect payment; the act of presenting an instrument to a drawee for acceptance.

Negotiable

Referring to instruments or documents whose rights or monetary value can be transferred to another individual through endorsement or delivery.

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Instrument

A formal legal document that serves as evidence of a fact or a right, and can include negotiable instruments in financial transactions.