Suppose that Paraguay and Guyana are both engaged in the ...

[tatyanajohnson]

Question 1

If the slopes of the ________ involving corn and wheat in the United States and Canada are equal, specialization does not benefit either country.

◦ supply curves
◦ demand curves
◦ production possibility frontiers
◦ marginal revenue curves

Question 2

Suppose that Paraguay and Guyana are both engaged in the production of soybeans and grapefruit, and that Paraguay has an absolute advantage in the production of both goods. If Guyana has a comparative advantage in the production of soybeans, then Guyana

◦ has a higher opportunity cost for soybeans, which means it should specialize in the production of grapefruit and engage in trade.
◦ has a lower opportunity cost for producing soybeans, but specialization is not feasible because Paraguay has a lower monetary cost of soybean production.
◦ has a lower opportunity cost for soybeans, which means that it should specialize in production of soybeans and engage in trade.
◦ should continue to produce soybeans, but only for domestic consumption, because trade is not a viable option.

[abro1885]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly

[tatyanajohnson]

Excellent

[abro1885]

Great! Please up vote