The Following Table Indicates the Production Possibilities of Food and Clothing

question 97

Multiple Choice

The following table indicates the production possibilities of food and clothing per worker day in the United States and South Korea. Which of the following is true?

• A) Mutual gains could be realized if the United States specialized in producing food and South Korea in producing clothing.
• B) Mutual gains could be realized if the United States specialized in clothing production and South Korea in food production.
• C) South Korean workers are the high-cost producers of clothing.
• D) None of the above are true.

---

Definitions:

Co-Insurance Clause

A clause that may be inserted in an insurance policy that renders the insured an insurer for a part of the loss if the insured fails to maintain insurance coverage of not less than a specified minimum amount or percentage of the value of a property.

Indemnity

A contractual promise to compensate for loss or damage incurred by the promisee.

Property Worth

The market value of an asset or property, determined by factors such as location, condition, and market trends.

Culture

A complex system of shared beliefs, values, customs, behaviors, and artifacts that members of society use to cope with their world and with one another.