Table 3-4 Assume That the Farmer and the Rancher Can Switch Between

question 339

Multiple Choice

Table 3-4
Assume that the farmer and the rancher can switch between producing meat and producing potatoes at a constant rate.

-Refer to Table 3-4.Assume that the farmer and the rancher each has 40 labor hours available.If each person spends all his time producing the good in which he has a comparative advantage and trade takes place at a price of 2 pounds of meat for 6 pounds of potatoes,then

• A) the farmer and the rancher will both gain from this trade.
• B) the farmer will gain from this trade,but the rancher will not.
• C) the rancher will gain from this trade,but the farmer will not.
• D) neither the farmer nor the rancher will gain from this trade.

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Definitions:

Trochanter

A large, bony prominence found on the femur, serving as a major attachment point for muscles.

Fossa

A depression or hollow, often found in bones or in the body, serving various purposes like accommodating muscles or organs.

Sinus

A cavity within a bone or other tissue, most commonly found in the nose and respiratory system.

Chondrocostal

Pertaining to the cartilage connected to the ribs, often used in the context of the chest structure and related conditions.