Given: In the US consumption of apples was Free Trade, consumption of apples was 6000, bananas-1500, the prices were $0.05/apple, $0.07/banana. America specializes in apples. If the banana production in the US has been stopped as a result of the Free Trade, can it be that both banana-producers and banana- workers are worse-off? OA Yes, because lucrative business left for the other country OB No, because at least one group wins. OC No, because total income increased. OD Yes, but the situation may be adjusted because total income in the society has increased.

Given: In the US consumption of apples was Free Trade, consumption of apples was 6000, bananas-1500, the prices were $0.05/apple, $0.07/banana. America specializes in apples. If the banana production in the US has been stopped as a result of the Free Trade, can it be that both banana-producers and banana- workers are worse-off? OA Yes, because lucrative business left for the other country OB No, because at least one group wins. OC No, because total income increased. OD Yes, but the situation may be adjusted because total income in the society has increased.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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