New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. In the same growing season, Venezuela can raise 45 tons of beef or produce 650 boxes of tulips. When the two countries begin trading beef for tulips, we expect the total surplus from beef consumption and production to: A) fall in New Zealand B) rise in New Zealand C) stay the same in Venezuela. D) either rise or fall in Venezuela.
New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. In the same growing season, Venezuela can raise 45 tons of beef or produce 650 boxes of tulips. When the two countries begin trading beef for tulips, we expect the total surplus from beef consumption and production to: A) fall in New Zealand B) rise in New Zealand C) stay the same in Venezuela. D) either rise or fall in Venezuela.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 7PA
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New Zealand in one year can raise 75 tons of beef or produce 750 boxes of tulips. In the same growing season, Venezuela can raise 45 tons of beef or produce 650 boxes of tulips. When the two countries begin trading beef for tulips, we expect the total surplus from beef consumption and production to:
A) |
fall in New Zealand |
B) |
rise in New Zealand |
C) |
stay the same in Venezuela. |
D) |
either rise or fall in Venezuela. |
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