Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the following would be most consistent with this? Elbonia has an opportunity cost of producing one ton of grain equal to 3 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 2 tons of steel. Elbonia has an opportunity cost of producing one ton of grain equal to 2 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 3 tons of steel. Both Elbonia and Kneebonia have identical PPFS.
Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the following would be most consistent with this? Elbonia has an opportunity cost of producing one ton of grain equal to 3 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 2 tons of steel. Elbonia has an opportunity cost of producing one ton of grain equal to 2 tons of steel, and Kneebonia has an opportunity cost of one ton of grain equal to 3 tons of steel. Both Elbonia and Kneebonia have identical PPFS.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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