Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Then suppose that trade is initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. What maximum amounts will Freedonia now be able to consume?
A) 30 units of corn and 30 units of wheat.
B) no corn and 30 units of wheat.
C) 60 units of corn and 30 units of wheat.
D) no corn and 60 units of wheat.
Correct Answer:
Verified
Q141: Table 3-6 Q142: Table 3-6 Q144: Table 3-6 Q145: Table 3-6 Q147: Suppose that a worker in Cornland can Q148: Table 3-6 Q149: Suppose that a worker in Freedonia can Q150: Table 3-6 Q151: Suppose that a worker in Radioland can Q151: Table 3-6 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
