Table 3-38
-Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn and soybeans each state can produce in one growing season. From this table, we can conclude that Iowa should specialize in the production of
A)both goods and Nebraska should specialize in the production of neither good.
B)neither good and Iowa should specialize in the production of both goods.
C)corn and Nebraska should specialize in the production of soybeans.
D)soybeans and Nebraska should specialize in the production of corn.

Question

​Table 3-38 
-​Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn and soybeans each state can produce in one growing season. From this table, we can conclude that Iowa should specialize in the production of
A)​both goods and Nebraska should specialize in the production of neither good. 
B)​neither good and Iowa should specialize in the production of both goods. 
C)​corn and Nebraska should specialize in the production of soybeans. 
D)​soybeans and Nebraska should specialize in the production of corn.

Quizplus · Accepted Answer

According to the table, Iowa can produce more of both corn and soybeans than Nebraska. However, it can produce relatively more corn compared to soybeans compared to Nebraska. Thus, Iowa should specialize in the production of corn, while Nebraska should specialize in the production of soybeans. This will allow both states to take advantage of their comparative advantages and increase overall production efficiency.

​Table 3-38 -​Refer to Table 3-38. Iowa and Nebraska Can Both Produce

Table 3-38 -Refer to Table 3-38. Iowa and Nebraska Can Both Produce