--%>

Exchange and Specialization

I have a problem in economics on Exchange and Specialization. Please help me in getting the right answer from the following question. Sarah the wheat farmer would be most probable to trade for fruit from the Kathy's orchard if: (i) Sarah's opportunity cost to generate wheat is relatively lower. (ii) Both Kathy and Sarah specialize to decrease costs. (iii) Sarah consists of a comparative benefit in wheat. (iv) Sarah encompasses the higher opportunity cost for the fruit. (v) All of the above.

What is the right answer?

   Related Questions in Business Economics

  • Q : How might government correct this

    What divergences arise between equilibrium and an efficient output spillover benefits are present?  How might government correct this divergence?

  • Q : Elucidate types of unemployment

    Elucidate types of unemployment?

  • Q : Explain the term Earnings per share

    Briefly explain the term Earnings per share (or EPS)?

  • Q : Absolute advantage in international

    One early involvement of Adam Smith to the theory of gains by international trade, although later thoroughly revised and refined through David Ricardo, was the conception of: (1) mercantilism. (2) absolute advantage. (3) comparative a

  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

  • Q : Define the term invisible hand in

    The “invisible hand” of the marketplace is a word referring to consider as: (w) government policies to set market prices at equilibrium levels. (x) speculative manipulations which create disequilibrium. (y) automatic adjus

  • Q : Expiation of Economists for Economic

    Please help me to solve the problem of economic that is given below: Economists describe economic costs as like: (w) money outlays. (x) accounting cost. (y) opportunity cost. (z) v

  • Q : Illustrate the advantage of corporate

    Illustrate the advantage of corporate form of organization?

  • Q : Public policies for low-income Fuel

    Fuel stamp programs which subsidize heating oil purchases through low-income households encourage those families to: (w) create more income by working. (x) particularly conserve on their use of fuel. (y) live along with less purchasing power. (z) subs

  • Q : Exchange is the necessary consequence

    Explain: “Exchange is the necessary consequence of specialization.”