Respuesta :
If both Amy and Jim produce the good for which each has a comparative advantage, total output of this economy will be "5,000 pounds of cheese and 20 houses."
What is economy?
A complicated system of interconnected production, consumption, and trade activities that directly decides how resources are shared among all players is referred to as an economy.
Some key features regarding the economy are-
- The manufacturing, consumption, & distribution of products and services all work together to meet the needs of those who live and work in the economy.
- An economy might be a country, an area, a single business, or even a household.
- Market economies, also known as free markets, are self-regulating, allowing items to be created and dispersed in response to consumer demand.
- A government entity regulates command economies by determining the items produced, the quantities, and thus the price paid by them.
- Few economies in the modern world are fully market-based or command-based.
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The complete question is-
Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year.If both Amy and Jim produce the good for which each has a comparative advantage, total output of this economy will be:
