Suppose There Are Only Two Goods in the World,wheat and Shoes.If

question 10

Multiple Choice

Suppose there are only two goods in the world,wheat and shoes.If it is true that with its vast resources the United States could produce both more wheat and more shoes than Brazil,

• A)Brazil will never have a comparative advantage and,thus,can never gain from trading with the United States.
• B)trade between the United States and Brazil will make the United States better off but will leave Brazil worse off unless the wage of workers in Brazil rises to equal that of American workers.
• C)total production of wheat and shoes cannot be increased through specialization and trade.
• D)both countries will be able to gain from specialization and trade as long as relative costs of producing the two goods are different in Brazil than in the United States.

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Definitions:

Implementing Change

The process of applying strategies and actions to initiate and manage the transition within an organization or process.

Telling the Truth

The act of conveying facts or reality as accurately as possible, without deception or omission.

Waiting Patiently

The ability to endure delay or endure difficult situations without becoming annoyed or anxious.

North American Companies

Businesses or corporations that are based in North America, encompassing Canada, the United States, and Mexico.