Microeconomics
A farmer can produce either 100 bushels of corn or 50 bushels of wheat. What is the opportunity cost of producing 1 bushel of wheat?
What role does negotiation power play in determining the terms of trade?
What is opportunity cost?
Which factor is most likely to influence the final agreed-upon price within the trade range?
How does comparative advantage affect the terms of trade?
Why is equity important in setting the price of trade?
If the opportunity cost of producing 1 unit of good A is 3 units of good B, what is a fair exchange rate between good A and good B?
If the opportunity cost of producing 1 unit of good X is 4 units of good Y, what is a fair exchange rate between good X and good Y?
What is the goal of equity in trade?
