Consider the No-Trade Input/output Situation Presented in the Following Table

question 84

Multiple Choice

Consider the no-trade input/output situation presented in the following table and graph for South and North Carolina.Assume that free trade is legal. Input/Output without Trade

• A)South Carolina
• B)North Carolina
• C)The states are equally good at making guns.

		country
	south carolina	north carolina	total
I. total potintal output
(lbs. or yard; 000,000s)
guns	500	250	750
butter	1,000	750	1,750
II. consumption
(lbs. or yard; 000,000s)
guns	250	200	450
butter	500	150	650

Which state is better at making guns?

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Definitions:

Immigration

The process of individuals moving into a new country with the intention of permanent residence.

Total Output

The total amount of goods and services produced by an economy or a firm within a specific period.

Productive Capacity

The maximum output a company, sector, or economy can produce using its current resources efficiently.

Wage Bill

The total amount of money paid by businesses to their employees for work performed, typically over a specific period.