The following graph shows the production possibilities frontier for the imaginary country of Bellissima under conditions of increasing costs. In the absence of trade, the relative cost of rice in Bellissima in terms of computers (or the marginal rate of transformation (MRT) of rice into computers) is shown by the slope of line 11, tangent to the production possibilities frontier at point A. RICE (Bushels) 200 180 160 140 120 100 80 60 40 20 0 2 6 8 10 COMPUTERS B 12 14 16 18 20 Consumption After Trade ? Which of the following most accurately describes Bellissima's economy in the absence of trade? Bellissima produces 156 bushels of rice but consumes only 120 bushels of rice. Bellissima produces 6 computers and 156 bushels of rice. Bellissima produces and consumes 6 computers and 120 bushels of rice.

The following graph shows the production possibilities frontier for the imaginary country of Bellissima under conditions of increasing costs. In the absence of trade, the relative cost of rice in Bellissima in terms of computers (or the marginal rate of transformation (MRT) of rice into computers) is shown by the slope of line 11, tangent to the production possibilities frontier at point A. RICE (Bushels) 200 180 160 140 120 100 80 60 40 20 0 2 6 8 10 COMPUTERS B 12 14 16 18 20 Consumption After Trade ? Which of the following most accurately describes Bellissima's economy in the absence of trade? Bellissima produces 156 bushels of rice but consumes only 120 bushels of rice. Bellissima produces 6 computers and 156 bushels of rice. Bellissima produces and consumes 6 computers and 120 bushels of rice.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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