Table 3-23 Assume That the Farmer and the Rancher Can Switch Between

question 279

Multiple Choice

Table 3-23
Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate.
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-Refer to Table 3-23. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 1 pound of pork for 2 pounds of tomatoes, then

• A)the farmer and the rancher will both gain from this trade.
• B)the farmer will gain from this trade, but the rancher will not.
• C)the rancher will gain from this trade, but the farmer will not.
• D)neither the farmer nor the rancher will gain from this trade.

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Definitions:

Socialism

A political and economic ideology advocating for collective or governmental ownership and administration of the means of production and distribution of goods.

Elected Union Officials

Individuals chosen through an electoral process by union members to hold leadership positions and represent their interests.

Union Workers

Employees who are members of a union, an organization that represents their interests, particularly in negotiations with employers over wages, benefits, and working conditions.

Structural Changes

Fundamental transformations in an economy, organization, or system's composition, often involving shifts in industries, technologies, or patterns of economic activity.