Table 3-8 Assume That Kito and Penda Can Switch Between Producing Baskets

question 301

Multiple Choice

Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.

-Refer to Table 3-8.At which of the following prices would both Kito and Penda gain from trade with each other?

• A) 30 baskets for 15 birdhouses
• B) 30 baskets for 18 birdhouses
• C) 30 baskets for 24 birdhouses
• D) Kito and Penda could not both gain from trade with each other at any price.

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Definitions:

Right-to-Work Laws

Statutes that provide workers with the choice to join or support a labor union without facing mandatory membership as a condition of employment.

Voluntarism

A philosophy or principle that promotes voluntary actions or services rather than those compelled by law.

Communism

A political and economic ideology advocating for the common ownership of the means of production and the absence of social classes, money, and the state.

Socialism

A political and economic ideology advocating for collective or governmental ownership and administration of the means of production and distribution of goods.