Table 351
Full-Employment Output of Goods Based on the Information in Soybeans

question 91

Multiple Choice

$\begin{array}{|c|c|c|}\hline \text { Country } & \text { Tons of Soybeans } & \text { Computers } \\\hline \text { China } & 100 & 300 \\\hline \text { United States } & 150 & 750 \\\hline\end{array}$
Table 35.1
Full-Employment Output of Goods Based on the information in Table 35.1,assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.For trade to be mutually beneficial for both countries,the terms of trade will be such that 1 ton of soybeans will exchange for

• A)More than 3 computers but less than 5.
• B)More than 1/5 of a computer but less than 1/3.
• C)Less than 3 computers.
• D)Zero computers.

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Definitions:

Research and Development Costs

Expenses associated with the research and development activities of a company, aiming at new product development and improvement of existing products.

Economies of Scale

Cost advantages that a business can achieve due to an increase in the scale of production, leading to lower per-unit costs.

Diseconomies of Scale

The phenomenon where, as a firm or production process increases in size beyond a certain point, the cost per unit increases, leading to reduced efficiency.

Production Volume

The total quantity of products manufactured within a specific period, indicating the level of output.