In Question #27 above, suppose that the country, when it is opened to trade, did not Change its production combination from the production combination at point M. In this Situation, how many units of its import good could the country obtain if it exported all of The export good that it produced?
A) 240 units
B) 350 units
C) 500 units
D) 800 units

Question

Quizplus · Accepted Answer

If the country exports all of its export good, it would be producing 750 units of the import good (point F). If it then moves along the production possibilities curve to point E, it could obtain 350 units of the export good. Therefore, the answer is choice B, 350 units.

In Question #27 Above, Suppose That the Country, When It