following is the key factor that causes gains from trade to be possible in this setup? Group of answer choices A) None of the other options. B) The possibility that A works harder than B. C) The possibility that B works harder than A.
following is the key factor that causes gains from trade to be possible in this setup? Group of answer choices A) None of the other options. B) The possibility that A works harder than B. C) The possibility that B works harder than A.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 4SQP
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Question
Refer back to the setup of the previous question. Which of the following is the key factor that causes
Group of answer choices
A) None of the other options.
B) The possibility that A works harder than B.
C) The possibility that B works harder than A.
D) The difference in the production tradeoffs (i.e., how many units of Corn production must a person give up if they wish to produce an additional outfit) between A and B – which in turn gives rise to the difference between “willingness to pay” and “willingness to sell.”
E) The fact that A has an absolute advantage in the production of Outfits and Corn.
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