Suppose That a Worker in Country a Can Make Either

question 99

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Two possible consumption bundles that Country A could produce are:

• A) (5,000 bananas, 1,000 tomatoes) and (1,000 bananas, 5,000 tomatoes)
• B) (5,000 bananas, 0 tomatoes) and (2,500 bananas, 500 tomatoes)
• C) (2,500 bananas, 500 tomatoes) and (1,250 bananas, 800 tomatoes)
• D) (2,500 bananas, 750 tomatoes) and (1,250 bananas, 750 tomatoes)

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Definitions:

Commercial Impracticability

A legal doctrine that excuses a party from performing a contract when events have occurred making performance excessively difficult, expensive, or harmful.

Frustration of Purpose

A legal doctrine that allows parties to be relieved from their contractual obligations if an unforeseen event undermines the contract's original purpose.

Substantial Performance

Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.

Unforeseen Circumstances

Events that a reasonable person would not be expected to anticipate.