Asked by
Verified
(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 bushels of wheat,while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat.Assume each nation specializes completely,based on comparative advantage,and the price of 1 head of cattle equals the price of 2 bushels of wheat.If Jackson exports 120 bushels of wheat to Tahoe,Tahoe will export _____ head of cattle to Jackson.
A) 120
B) 60
C) 240
D) 200
Autarky
Autarky is an economic policy or situation in which a country is self-sufficient and does not engage in international trade.
Comparative Advantage
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.
Exports
Goods or services sent from one country to another for sale or trade.
- Scrutinize the impact that specialization and trade have on production and consumption internationally.
Verified Answer
Learning Objectives
- Scrutinize the impact that specialization and trade have on production and consumption internationally.
Related questions
(Table: the Production Possibilities for Tractors and Crude Oil)Use Table ...
(Table: the Production Possibilities for Tractors and Crude Oil)Use Table ...
(Figure: the Production Possibilities for Two Countries)Use Figure: the Production ...
(Figure: the Production Possibility Frontiers for Jackson and Tahoe)Use Figure ...
(Figure: the Production Possibilities for Two Countries)Use Figure: the Production ...