-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.

---

Definitions:

Broken Back

A term sometimes used in medical or veterinary contexts to describe a fracture or series of fractures along the spine.

Companion Flanges

Components used to connect rotating shafts in machinery, allowing for the transmission of power.

Driveline Arrangement

The layout and components of a vehicle's system that delivers power from the transmission to the drive wheels.

Standpipe

A vertical pipe designed to provide a point of access to a water supply, often used by firefighters for hose connections.