Production possibilities for one week for Simran and Preet Simran Preet Good X 160 Good X Good Y Good Y 40 30 10 120 20 20 20 80 40 10 30 40 60 0: 40 80 to Table 2. What is true about this economy? Check all options that you think are correct. More than one option may be correct. Ref O A. Both Simran and Preet will gain from trade if Simran sells 20 units of Y and Preet sells 80 units of X. O B. Both Simran and Preet will gain from trade if Simran sells 20 units of X and Preet sells 80 units of Y. O C. Preet has an absolute advantage in production of both goods, therefore, Preet cannot gain from trade with Simran. O D. This economy does not have a trade combination that would benefit both Simran and Preet. O E Both Simran and Preet will gain from trade if Simran sells 30 units of Y and Preet sells 60 units of X. OF. Both Simran and Preet will gain from trade if they trade a half of the quantity of the good each of them makes when they specialize according to their comparative advantages.

Production possibilities for one week for Simran and Preet Simran Preet Good X 160 Good X Good Y Good Y 40 30 10 120 20 20 20 80 40 10 30 40 60 0: 40 80 to Table 2. What is true about this economy? Check all options that you think are correct. More than one option may be correct. Ref O A. Both Simran and Preet will gain from trade if Simran sells 20 units of Y and Preet sells 80 units of X. O B. Both Simran and Preet will gain from trade if Simran sells 20 units of X and Preet sells 80 units of Y. O C. Preet has an absolute advantage in production of both goods, therefore, Preet cannot gain from trade with Simran. O D. This economy does not have a trade combination that would benefit both Simran and Preet. O E Both Simran and Preet will gain from trade if Simran sells 30 units of Y and Preet sells 60 units of X. OF. Both Simran and Preet will gain from trade if they trade a half of the quantity of the good each of them makes when they specialize according to their comparative advantages.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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