The country of Zanabar produces computers and produces them in a large quantity while the country of Abathana expertly produces cell phones in large quantities. In order for both countries to consume more desirable combinations of goods and services (computers and cell phones) they should   Question 46 options:   a)  Each country should produce both computers and cell phones.   b)  allow only Abathana to trade a small quantity of cell phones for computers since cell phones are worth more.   c)  trade until each country has exactly equal number of cell phones and computers which will then create efficiency.   d)  freely trade computers and cell phones to improve allocative efficiency

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The country of Zanabar produces computers and produces them in a large quantity while the country of Abathana expertly produces cell phones in large quantities. In order for both countries to consume more desirable combinations of goods and services (computers and cell phones) they should
 

Question 46 options:

 

a) 

Each country should produce both computers and cell phones.
 

b) 

allow only Abathana to trade a small quantity of cell phones for computers since cell phones are worth more.
 

c) 

trade until each country has exactly equal number of cell phones and computers which will then create efficiency.
 

d) 

freely trade computers and cell phones to improve allocative efficiency.
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