There are two countries: Country A and Country B. These countries have the same amount of resources and both produce the same two goods, pencils and markers. The opportunity cost of pencils in Country A is ½ markers per pencil and the opportunity cost of pencils in Country B is 4 markers per pencil. Would both of these countries accept a trade of 5 markers per pencil? Group of answer choices No. Country A will reject this trade No. Country B will reject this trade Yes. Both countries will accept this trade. No. Both of these countries will reject this trade.
There are two countries: Country A and Country B. These countries have the same amount of resources and both produce the same two goods, pencils and markers. The opportunity cost of pencils in Country A is ½ markers per pencil and the opportunity cost of pencils in Country B is 4 markers per pencil. Would both of these countries accept a trade of 5 markers per pencil? Group of answer choices No. Country A will reject this trade No. Country B will reject this trade Yes. Both countries will accept this trade. No. Both of these countries will reject this trade.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
There are two countries: Country A and Country B. These countries have the same amount of resources and both produce the same two goods, pencils and markers. The
Would both of these countries accept a trade of 5 markers per pencil?
Group of answer choices
No. Country A will reject this trade
No. Country B will reject this trade
Yes. Both countries will accept this trade.
No. Both of these countries will reject this trade.
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