-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 49

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Assuming free trade between these two countries,Canada will produce food

• A)as long as any positive amount of food is demanded.
• B)as long as more than 10 units of food are demanded.
• C)as long as people are willing to give up at least 1 unit of clothing to get a unit of food.
• D)as long as people are willing to give up more than 1/2 a unit of clothing to get a unit of food.

---

Definitions:

Apples

A common fruit that is grown worldwide, known for its variety in colors, sizes, and flavors.

Bananas

Edible fruits, typically elongated and slightly curved, featuring a soft flesh covered by a yellow peel when ripe.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness that a consumer derives from consuming goods and services.

Budget Constraint

The limitations on the purchase capabilities of an individual or entity, based on their available income and the prices of goods and services.