Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following: Croissants Poems Amber 40 2 Jade 30 1/2 In this situation, can mutually beneficial trade occur? Select one: A. No, because Jade is more productive than Amber at both activities. B. Yes, if Amber specializes in making croissants and trades them to Jade for her poems. C. No, because Amber more productive than Jade at both activities. D. Yes, if Amber specializes in writing poems and trades them to Jade for her croissants.
Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following: Croissants Poems Amber 40 2 Jade 30 1/2 In this situation, can mutually beneficial trade occur? Select one: A. No, because Jade is more productive than Amber at both activities. B. Yes, if Amber specializes in making croissants and trades them to Jade for her poems. C. No, because Amber more productive than Jade at both activities. D. Yes, if Amber specializes in writing poems and trades them to Jade for her croissants.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 3CQQ
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Question
Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following:
|
Croissants |
Poems |
Amber |
40 |
2 |
Jade |
30 |
1/2 |
In this situation, can mutually beneficial trade occur?
Select one:
A. No, because Jade is more productive than Amber at both activities.
B. Yes, if Amber specializes in making croissants and trades them to Jade for her poems.
C. No, because Amber more productive than Jade at both activities.
D. Yes, if Amber specializes in writing poems and trades them to Jade for her croissants.
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