Production Possibility Schedules for Two South Pacific Island Nations

question 99

Multiple Choice

Production Possibility Schedules for Two South Pacific Island Nations Which of the following statements is true?

• A) Gains from trade are possible for both countries.
• B) Only Kiribati will benefit from trade with Tuvalu.
• C) Only Tuvalu will benefit from trade with Kiribati.
• D) No gains from trade are possible for either Kiribati or Tuvalu.

---

Definitions:

Corporate Income Tax

A tax imposed by governments on the income generated by businesses and corporations.

Government Provision

The supply of goods, services, or resources by the government to its citizens, which can include healthcare, education, and infrastructure.

Business Property Tax

A tax imposed on the real estate, equipment, and sometimes the inventory of a business.

Transfer Payments

Payments made by governments to individuals without any expectation of a good or service being provided in return, such as social security benefits and unemployment benefits.