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Suppose there are only two nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If<br />
Atlantis produces only surfboards, it can make 27 per day. If Atlantis produces only kayaks, it can make 18 per<br />
day. If Pacifica produces only surfboards, it can make 32 per day. If Pacifica produces only kayaks, it can make<br />
24 per day. After trade begins, __________ will specialize in the production of surfboards and __________ will<br />
specialize in the production of kayaks.<br />
A. Atlantis; Atlantis<br />
B. Pacifica; Atlantis<br />
C. Atlantis; Pacifica<br />
D. No trade will<br />
occur.<br />
Question 16 of<br />
20<br />
0.0/ 5.0 Points<br />
Suppose there are only two nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If<br />
Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per<br />
day. If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make<br />
75 per day. After trade begins, __________ will specialize in the production of surfboards and __________ will<br />
specialize in the production of kayaks.<br />
A. Atlantis; Atlantis<br />
B. Pacifica;<br />
Pacifica<br />
C. Atlantis; Pacifica<br />
D. Pacifica;<br />
Atlantis<br />
Question 17 of<br />
20<br />
5.0/ 5.0 Points<br />
Which of the following situations will arise in the domestic market following the imposition of a tariff?<br />
A. imports decrease, domestic production increases, prices increase<br />
B. imports increase, domestic production increases, prices increase
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