Suppose a Country Produces Only Two Goods - Wheat [W]

question 80

Essay

Suppose a country produces only two goods - wheat [W] and corn [C].The marginal rate of transformation [MRT] under autarkic condition is 2W/1C.The world price ratio is 1W/1C.Illustrate with the help of a suitable diagram,how the country will benefit if it indulges in international trade.

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Definitions:

Delegation

The transfer of a contractual duty.

Plastic Surgeon

A medical specialist focused on reconstructing or repairing parts of the body by moving tissue for cosmetic or functional reasons.

Legally Valid

Having a status that is recognized and enforceable by law or within the legal system.

Satisfactory Performance

In contract law, the situation that exists when either personal taste or objective standards determine the contracting parties have performed their contractual duties according to the agreement.