Use the Following to Answer Questions: Table: Production Possibilities for the United

question 122

Multiple Choice

Use the following to answer questions: Table: Production Possibilities for the United States and Mexico $$\begin{array} { l c c } \hline & \text { Corn (millions of tons) } & \text { Potatoes (millions of tons) } \\\hline \text { United States } & 50 & 10 \\\text { Mexico } & 40 & 5 \\\hline\end{array}$$
-(Table: Production Possibilities for the United States and Mexico) Using the table on production possibilities for the United States and Mexico, assume each country specializes in the good for which it has a comparative advantage. Which of the following answers identifies a trade price that both countries would find acceptable? (Units are in tons.)

• A) 0.2 potato for one corn < Trade price < five corns for one potato
• B) 0.125 potato for one corn,< Trade price < eight potatoes for one corn
• C) five corns for one potato < Trade price < eight corns for one potato
• D) 0.125 potato for one corn < Trade price < five potatoes for one corn

---

Definitions:

Advances

Developments or progressions in a particular area, often leading to improvements or new insights.

Peer Influence

The effect that the social group an individual chooses or finds themselves in has on their behavior, attitudes, or values.

Future Orientation

The cognitive and emotional inclination to think about, plan, and prioritize the future over immediate needs or desires.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.