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There are two countries: the country of Macro and the country of Micro. Macro is wealthy and industrialized. It is able to produce many different
There are two countries: the country of Macro and the country of Micro. Macro is wealthy and industrialized. It is able to produce many different goods quickly, including processed sugar, gasoline, furniture, and clothing. Micro specializes in building furniture. It does not produce as much furniture as Macro, but it does produce furniture more efficiently than Macro. What could motivate Macro to buy furniture from Micro, instead of just producing the furniture itself? Question 17 options: It would be able to eliminate the second nation's goods from the market It would be able to focus its resources on producing the other goods that it specializes in It would have a better opportunity to sell its own furniture elsewhere It would have a surplus of furniture, from itself and from the second nation
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