The Following Table Shows That in One Day Poultry Farmers

question 54

Multiple Choice

The following table shows that in one day poultry farmers in Arkansas can produce 3 cartons of eggs, while poultry farmers in Idaho can produce 2 cartons of eggs.It takes Arkansas potato farmers one day to produce 30 tons of potatoes, while Idaho potato farmers produce 10 tons of potatoes in that same time. Table 34.4 According to Table 34.4, the limits to the terms of trade in potatoes are 1 ton of potatoes in exchange for:

• A)between 5 and 10 cartons of eggs.
• B)between 1 and 10 cartons of eggs.
• C)between one-tenth and one-fifth of a carton of eggs.
• D)between one-fourth and half a carton of eggs.
• E)between 2 and 10 cartons of eggs.

---

Definitions:

Efficient Outcome

An economic situation in which all resources are allocated in the most effective way possible, maximizing potential benefit.

Negative Externality

A negative effect or cost suffered by a third party due to an economic transaction they were not involved in.

Socially Optimal Price

The price of a good or service that reflects the true cost to society, accounting for externalities and ensuring allocative efficiency.

Transaction Costs

Expenses incurred when buying or selling goods and services, which can include fees, taxes, and other costs.