--%>

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 : How Balance of payments always balances

    Balance of payments (BOP) always balances. Describe it. Answer: Balance of payments is for all time balanced. The negative balance on current account is equated wit

  • Q : Define flexible exchange rate Flexible

    Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.

  • Q : Problem on International trade economy

    If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii

  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

  • Q : Need of foreign currency Why foreign

    Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem

  • Q : Circular flow model In simple circular

    In simple circular flow model, the only entities which finally consume goods, own resources, pay taxes or bear the loads of inflation, experience joy, or suffer pain, are as: (i) corporations. (ii) Households. (iii) Government agencies. (iv) Business

  • Q : Positive Balance of Payments I have a

    I have a problem with the satement “Things will look excellent for the US if we could just get to where we are consistently executing a positive Balance of Payments.” Can someone in short comment on this statement?  

  • Q : Explain all the approaches of Paul

    Explain all the approaches of Paul Samuelson.

  • Q : Key challenges to india's economic

    Identify the key challenges to india's economic development. To what extent the second generation reforms will tackle the current challenges of india's development

  • Q : Economic environment in Australia and

    Explain the Economic environment in Australia and Internationally and their factors which affect them?