Use the following to answer question:
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.Both the United States and Mexico will gain from trade if one tractor trades for _____ barrels of oil.

Question

Use the following to answer question: 
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.Both the United States and Mexico will gain from trade if one tractor trades for _____ barrels of oil.

Quizplus · Accepted Answer

The United States can produce 1,500 barrels of oil or 1 tractor. Mexico can produce 4,500 barrels of oil or 1 tractor. So, if one tractor trades for 1,500 barrels of oil, both countries will gain from trade.

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