Suppose there are three nations (North,South,and East) and three goods (A,B,and C) . Given resources and technology,North can produce 5 units of A,or 2 units of B,
Or 10 units of C,or any linear combination thereof. South can produce 5 units of A,
Or 2 units of B,or 5 units of C,or any linear combination thereof. East can produce
Either 1 unit of A,or 5 units of B,or 10 units of C,or any linear combination thereof.
The most efficient pattern of specialization is to have
A) North produce A, South produce B, and East produce C
B) North produce A, South produce C, and East produce B
C) South produce A, North produce B, and East produce C
D) South produce A, North produce C, and East produce B
E) East produce A, South produce B, and North produce C
Correct Answer:
Verified
Q2: Which of the following would not be
Q3: The next questions refer to the following.
Suppose
Q4: On average,over the last 50 years or
Q5: If a country exports $1 billion worth
Q6: According to the Hotelling Rule,the price of
Q7: The idea that efficient producers can benefit
Q8: Which of the following is not an
Q9: Applied to trade in two goods between
Q10: The largest exporter of goods and services
Q11: As a general rule,
A) large economies tend
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