Question
Individuals living in the state of Kansas like to consume both soybeans and blueberries. While it is possible for farmers to grow both crops in
Individuals living in the state of Kansas like to consume both soybeans and blueberries. While it is possible for farmers to grow both crops in Kansas, almost no farmers elect to use their land to grow blueberries. Instead, every year, Kansas exports soybeans and imports blueberries from nearby Michigan, where growers specialize in blueberries.
Which of the following principles of economic interaction best describes this scenario?
All costs are opportunity costs.
Trade can make everyone better off.
When markets do not achieve efficiency, government intervention can improve overall welfare.
There is a tradeoff between equality and efficiency.
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