QUESTION: What are the opportunity costs of food production for both China and the United States? U.S.
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QUESTION: What are the opportunity costs of food production for both China and the United States?
U.S. trade with mainland China has exploded in the past decade, with goods imports reaching $467 billion a year and exports up to $124 billion. For the following questions, we consider a hypothetical production possibilities frontier for food and textiles in both China and the United States.
The table below presents daily production possibilities for a typical worker in both China and the United States, assuming that only two kinds of goods are produced in both countries:
food and textiles.
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