In the United States, One Worker Can Produce 10 Tons

question 173

Multiple Choice

In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United Kingdom will gain the most from trade (and trade will be feasible) if 1 ton of steel trades for:

• A) 2 tons of chemicals.
• B) 3 tons of chemicals.
• C) 1.5 tons of chemicals.
• D) 0.5 ton of chemicals.

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Definitions:

Divesting

The process of selling off subsidiary business interests or investments, typically to refocus core activities or raise capital.

Compensating

Providing something, typically money, to make up for a loss, damage, or inconvenience caused.

Acquiring

The process of obtaining ownership or control of something, often referenced in the context of corporate takeovers or purchasing assets.