Consider a World of Two Countries Producing Only Wheat and Cloth

question 5

Multiple Choice

Consider a world of two countries producing only wheat and cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth. Country A should export

• A) wheat and cloth; country B should not export anything.
• B) wheat and country B should export cloth.
• C) nothing and country B should export both wheat and cloth.
• D) cloth and country B should export wheat.

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Definitions:

Economic Boycotts

A form of protest or activism where individuals, groups, or countries refuse to purchase goods or services from a particular company, country, or organization to achieve political or economic objectives.

British Policies

Refers to the laws, regulations, and actions taken by the British government or authorities which can have domestic or international effects.

Colonists

describes individuals who settle in territories often claimed or controlled by another country, usually in pursuit of economic opportunities and new lives, such as the settlers of the American continents by European powers.

Committees of Observation

Local groups established in the American colonies to enforce the boycotts imposed by the Continental Congress and to resist British policies leading up to the American Revolution.