Assume That Maximum Feasible Hourly Productions Levels If All Resources

question 193

Multiple Choice

Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 3 yards of fabric or 9 bushels of wheat. Maximum feasible production levels if all resources are utilized in Japan are either 6 yards of fabric or 12 bushels of wheat. Based on this information

• A) beneficial trade is absolutely impossible between the two countries.
• B) the United States will benefit from trading but Japan will not.
• C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric.
• D) Japan should specialize in both products.

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Definitions:

Seller's Place

The physical or juridical location where the seller operates, often relevant in legal and commercial transactions.

Freedom of Contract

The principle that individuals have the liberty to freely enter into contracts and agree on terms without undue interference.

Caveat Emptor

Latin for "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless protected by warranty.

Sale of Goods Act

Legislation governing the sale of goods, prescribing the rights and duties of buyers and sellers.