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

question 41

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.Without trade,the farmer produced and consumed 2 pounds of meat and 4 pounds of potatoes and the rancher produced and consumed 4 pounds of meat and 2 pounds of potatoes.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 3 pounds of meat for 6 pounds of potatoes.As a result,the farmer gained

• A) 1 pound of meat and 2 pounds of potatoes and the rancher gained 0 pounds of meat and 5 pounds of potatoes.
• B) 1 pound of meat and 2 pounds of potatoes and the rancher gained 1 pound of meat and 4 pounds of potatoes.
• C) 3 pounds of meat and 6 pounds of potatoes and the rancher gained 5 pounds of meat and 6 pounds of potatoes.
• D) 4 pounds of meat and 12 pounds of potatoes and the rancher gained 6 pounds of meat and 8 pounds of potatoes.

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Definitions:

Unionization

The process of organizing the employees of a company into a union, aiming to collectively bargain for better wages, benefits, and working conditions.

Collective Bargaining

A negotiation process involving employers and employee representatives focused on reaching agreements concerning wages, working conditions, benefits, and various aspects of employee compensation and rights.

Filter Feeder

A filter feeder is an aquatic organism that feeds by straining suspended matter and food particles from water, typically possessing specialized structures to facilitate this process.

Symbiotic Relationship

A close and long-term biological interaction between two different biological organisms, which may be mutualistic, commensalistic, or parasitic.