You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC:
If you offer to give the other island 1 coconut for every 4 fish they give you, then they will:
A) refuse your offer because they have a comparative advantage in fish.
B) accept your offer because your opportunity cost of a coconuts is less than 4 fish.
C) refuse your offer because they can produce as many coconuts as you can.
D) accept your offer because their opportunity cost of a coconut is greater than 4 fish.
Correct Answer:
Verified
Q141: The benefits to specialization are even greater
Q143: If country A can produce more of
Q147: When a nation reduces the barriers to
Q148: As the differences in opportunity costs between
Q150: You are the Minister of Trade for
Q151: According to the textbook, NAFTA was expected
Q152: According to the textbook, the evidence indicates
Q153: You are the Minister of Trade for
Q157: The fundamental reason firms outsource is that:
A)low-wage
Q161: Which of the following jobs is least
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