If Resources and Goods Are Free to Move Across States

question 115

Multiple Choice

If resources and goods are free to move across states and if Oregon producers choose to specialize in producing honey while California producers choose to specialize in growing almonds, then we could reasonable conclude that:

• A)​California has a comparative advantage in producing almonds.
• B)​Oregon has a comparative advantage in producing honey.
• C)​the opportunity cost of growing almonds is lower in California than in Oregon.
• D)​all of the above are true.

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Definitions:

Promises Under Seal

Legally binding agreements marked with a seal, signifying a formal commitment beyond a standard contract.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Unconscionable

Describing actions or conditions that are so unfair or immoral that they shock the conscience, often leading to legal invalidation.

Fair Market Value

The price that property would sell for on the open market, reflecting the amount a willing buyer would pay a willing seller when neither is under pressure to buy or sell.