Specialize in the production of surfboards

Assignment Help Business Economics

Reference no: EM13735267

Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make 75 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks.

a. Pacifica; Atlantis

b. Pacifica; Pacifica

c. Atlantis; Atlantis

d. Atlantis; Pacifica

Reference no: EM13735267

Questions Cloud

According to the bureau of labor statistics : According to the Bureau of Labor Statistics, 8.3% of the labor force was unemployed in January 2012. A random sample of 100 employable adults was selected. Using the normal approximation to the binomial distribution, what is the probability that exac..

What you would rather maximize your total-marginal utility : Explain what you would rather maximize your total or marginal utility? How do you think you would determine when to stop consuming if you were at an all you can eat buffeted?

Explain why these vending machines differ : Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However, other vending machines dispense only one item (the item you bought)...

Analyze trends and forecast direction of business cycle : What part of the business cycle is the U. S. economy currently in? Evaluate your answer using three economic indicators. Analyze the trends and forecast the direction of the business cycle in the next six months using your economic indicators.

Specialize in the production of surfboards : Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..

GDP increases in nominal terms : If GDP increases in nominal terms from $600 billion in 1994 to $663 billion in 1996 and the price index (1992 = 100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred between 1994 and 1996?

Unemployment insurance payments : Suppose that inventories fall by $2 billion, consumption increases by $8 billion, unemployment insurance payments decline by $4 billion, and imports rise by $1 billion. By how much should measured GDP change?

Suppose belgium produces only two goods-chocolate and lace : Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will

Cause variation in household spending patterns : Which of the following is most likely to cause variation in American household spending patterns?

User Account

All Pages