-Refer to Above Figure to Answer This Question

question 94

Multiple Choice

-Refer to above figure to answer this question.Suppose that both Harmony and Tranquility are producing 20 pears;what will be the total gains from trade for the two countries?

• A)20 apples and 0 pears.
• B)30 apples and 10 pears.
• C)20 apples and 10 pears.
• D)20 apples and 30 pears.
• E)0 apples and 20 pears.

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Definitions:

Indemnity

A contractual agreement between parties where one agrees to compensate the other for any loss or damage incurred.

Guarantee

A formal pledge or assurance that certain conditions or obligations will be fulfilled, often serving as security in transactions.

Unwritten Lease

An oral or implied agreement between a landlord and tenant that has not been formalized in writing.

Enforceable Contract

A legally binding agreement between two or more parties that can be enforced by law if not fulfilled by one party.