--%>

Gain from specialization and exchange

If a Hawaiian can produce 50 bushels of either potatoes or pineapples per acre, whereas an Idahoan manages just 3 bushels of pineapples or 30 bushels of potatoes per acre, then: (1) Idaho’s absolute drawbacks prevent gains from specialization and exchange. (2) The optimal division is if each is self adequate. (3) Both might gain from the specialization and exchange, with Hawaiian growing pineapples and replacing them for Idaho potatoes. (4) Hawaii is very close to Idaho for either side to gain.

Can someone please help me in finding out the right answer from the above question.

   Related Questions in International Economics

  • Q : Describe the meaning of deficit in BOP

    Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.

  • Q : How is the exchange rate influenced by

    ‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’

  • Q : LORENZ CURVE THE AREA BETWEEN THE

    THE AREA BETWEEN THE LORENZ CURVE OF A COUNTRY AND THE DIAGONAL OF PERFECT EQUALITY REPRESENT

  • Q : Kind of exchange rate State which kind

    State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?

  • Q : Autonomous or accommodating carry

    Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.

  • Q : Components of capital account of

    Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.

  • Q : Supply of foreign exchange Explain how

    Explain how foreign exchange rate is determined beneath flexible exchange rate system. Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equival

  • Q : Determinants of market market structure

    market structure and price-output determination

  • Q : Exchange rates-a question of demand and

    ‘Can foreign exchange markets be analyzed in similar manner as the markets for ordinary physical commodities? Do demand slope downwards and supply slope upwards for currencies?’

  • Q : Indian economic what are the key

    what are the key callenges to indian economic development