Suppose that the United States and Canada both produce only two products: televisions and food. Their maximum output of each good and their opportunity costs are shown in this table. United States Canada Maximum output level Televisions Food (units) (pounds) 100 300 150 330 Opportunity cost Televisions 1.5 pounds of food 1.1 pounds of food Food 2/3 televisions 10/11 televisions Which of these trades would make both the United States and Canada better off? Choose one or more: A. The United States could trade Canada 20 pounds of food for 17 televisions. B. The United States could trade Canada 75 pounds of food for 60 televisions. C. The United States could trade Canada 100 pounds of food for 98 televisions. OD. None of the answer options are correct.

Suppose that the United States and Canada both produce only two products: televisions and food. Their maximum output of each good and their opportunity costs are shown in this table. United States Canada Maximum output level Televisions Food (units) (pounds) 100 300 150 330 Opportunity cost Televisions 1.5 pounds of food 1.1 pounds of food Food 2/3 televisions 10/11 televisions Which of these trades would make both the United States and Canada better off? Choose one or more: A. The United States could trade Canada 20 pounds of food for 17 televisions. B. The United States could trade Canada 75 pounds of food for 60 televisions. C. The United States could trade Canada 100 pounds of food for 98 televisions. OD. None of the answer options are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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