QUESTION 78 Suppose a worker in Canada can produce either 100 skateboards or 200 jars of peanut butter per day. A worker in Guatemala can produce 200 skateboards or 600 jars of peanut butter per day. A price ratio of 1SB=2.9PB would be good for both countries, but better for Canada than Guatemala. True False
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Canada: - Opportunity cost of 1 skateboard = 200 jars of peanut butter / 100 skateboards = 2 jars of peanut butter - Opportunity cost of 1 jar of peanut butter = 100 skateboards / 200 jars of peanut butter = 0.5 skateboards Guatemala: - Opportunity cost of 1 Show more…
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