Countries a and B Currently Consume 400 Units of Food

question 50

Multiple Choice

Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another.The citizens of country A have to give up one unit of food to gain two units of textiles,while the citizens of country B have to give up one unit of textiles to gain two units of food.Their production possibilities curves are shown. Suppose that trade is allowed and that the international exchange rate between food and textiles is one-for-one.The increased consumption following trade will be

• A)an increase of 400 units of food and 400 units of textiles.
• B)an increase of 1,200 units of food and 1,200 units of textiles.
• C)an increase of 800 units of food and 800 units of textiles.
• D)there are no gains from trade in this example.

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Definitions:

Offer of Proof

A legal procedure in a trial where a party outlines what evidence would show if it were allowed, often used after an objection to evidence has been sustained.

Class Action

A lawsuit filed by one or more plaintiffs on behalf of a larger group of people who are similarly affected by the same issue.

Representative Plaintiff

An individual in a class action lawsuit who represents the interests of the class members and whose experience typifies the grievances of the whole class.

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A named plaintiff is an individual who brings a lawsuit or is named in a legal action on behalf of a group in a class action lawsuit, representing the interests of the members of the class.