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Counties a and B Currently Consume 400 Units of Food

question 92

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Counties 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. Counties 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.   Under the theory of comparative advantage, if free trade is allowed, the market clearing price (or exchange rate if you will)  between food and textiles will be A) one unit of food for one unit of textiles. B) somewhere between One unit of food for two units of textiles and two units of food for one unit of textiles. C) one unit of food for two units of textiles. D) two units of food for one unit of textiles. Under the theory of comparative advantage, if free trade is allowed, the market clearing price (or exchange rate if you will) between food and textiles will be


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Acid Rain

Precipitation containing harmful amounts of sulfuric and nitric acids resulting from the atmospheric emission of sulfur dioxide and nitrogen oxides.

Scrubbers

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A main or leading benchmark that sets the necessary specifications or criteria for processes, products, or services.

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The presence of harmful or excessive quantities of substances in the air that pose risks to human health and the environment.

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