A Rancher Can Produce Only Hamburgers, While a Farmer Can

question 7

Multiple Choice

A rancher can produce only hamburgers, while a farmer can produce only French fries. If the rancher and the farmer like both foods, which of the following is most likely?

• A)They cannot gain from trade.
• B)They could gain from trade under certain circumstances, but not always.
• C)They could gain from trade because each would enjoy a greater variety of food.
• D)They could gain from trade only if each were indifferent between hamburgers and French fries.

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Definitions:

Global Commodity Chain

The worldwide network of production and distribution processes through which a product passes until it reaches the consumer.

Glocalization

The practice of conducting business according to both local and global considerations.

Neoliberal Organization

An entity or group that operates based on neoliberal principles, emphasizing free markets, deregulation, and the reduction of government intervention in the economy.

Grotesque Inequality

An extreme level of disparity in wealth, income, and opportunity between different individuals or groups within a society.