Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Brazil Chile Output produced in one hour bushels of wheat 16 12 pounds of beef 12 11 Which of the following prices would both Brazil and Chile gain from trade with each other? 6 bushels of wheat for 6 pounds of beef. 6 bushels of wheat for 5 pounds of beef. 6 bushels of wheat for 3 pounds of beef. 6 bushels of wheat for 4 pounds of beef.

Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Brazil Chile Output produced in one hour bushels of wheat 16 12 pounds of beef 12 11 Which of the following prices would both Brazil and Chile gain from trade with each other? 6 bushels of wheat for 6 pounds of beef. 6 bushels of wheat for 5 pounds of beef. 6 bushels of wheat for 3 pounds of beef. 6 bushels of wheat for 4 pounds of beef.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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