Below Is Some Hypothetical Data for the Countries of Canada

question 115

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.What is the output per worker in Mexico in the rye and bean industries respectively?

• A)10 and 20.
• B)2 and 4.
• C)3 and 0.5.
• D)0.5 and 3.

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Definitions:

Contract Curve

In economics, it is a curve that shows the set of mutually beneficial (efficient) allocations in a trade or exchange situation.

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources and the optimal allocation between two individuals.

Pareto Optimal Allocations

Economic situations where no individual can be made better off without making another individual worse off.

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources or outcomes between two parties, illustrating concepts like efficiency and market equilibria.