A Butcher Can Produce Only Hamburgers, and a Farmer Can

question 56

Multiple Choice

A butcher can produce only hamburgers, and a farmer can produce only potato chips.The butcher and the farmer both like both foods.They:

• A)cannot gain from trade
• B)could gain from trade under certain circumstances, but not always
• C)could gain from trade because each would enjoy a greater variety of food
• D)could gain from trade only if each were indifferent between hamburgers and potato chips

---

Definitions:

Mexican Consumers

Individuals or households in Mexico that purchase goods and services for personal use.

Intellectual Property

Refers to creations of the mind for which exclusive rights are recognized, such as inventions, literary and artistic works, symbols, names, and images.

Trade-Related Aspects

Refers to the facets of international trade agreements that affect goods, services, and intellectual property rights.

World Trade Organization

An international organization that regulates international trade between nations, aiming to ensure trade flows as smoothly, predictably, and freely as possible.