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

question 71

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.Assuming that consumers place equal value on both of these goods and that free trade between these two countries is possible,gains from trade

• A) are not possible.
• B) exist because food is more expensive to produce in Canada than in the U.S.
• C) exist because food is more expensive to produce in the U.S. than in Canada.
• D) do not exist because the consumers in each country have set their marginal rate of substitution equal to their country's marginal rate of transformation.

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Definitions:

Maximize Button

The maximize button is a control on a window's title bar that enlarges the window to fill the entire screen or returns it to its previous size.

Restore Down

A function in window management that reduces a maximized window to its previous size and position on the screen.

Shut Down

The process of closing all software applications and turning off a computer or device safely.

Computer Fans

Cooling devices within a computer that use rotation to move air across hardware components to reduce their temperature.