-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 63

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Free trade between these two countries will take place

• A)as long as Canada is willing to give up 0.25 unit of clothing to get a unit of food.
• B)as long as USA asks for at least 1.5 units of clothing in exchange for a unit of food.
• C)as long as Canada asks for at least 3 units of food in exchange for a unit of clothing.
• D)as long as USA is willing to give up at least 1.5 units of food in exchange for a unit of clothing.

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Definitions:

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date.

Sale of Equipment

A financial transaction involving the disposal of equipment assets in exchange for cash or other compensation.

Note Receivable

A written promise for amounts to be received by a business, typically including interest, from another party.