Question

Suppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that Pakistan produces 9753 barrels of oil and 9753 bushels of wheat each week. 1. In autarky, what is the largest amount of wheat United States can consume every week? Number bushels 2. What does the term autarky refer to? a) The process of negotiating terms of trade between two countries. b) A major argument against globalization. c) countries Government policies meant to reduce international trade. d) A situation where one country does not engage in trade with other

Answer 1

Answer: 1. 1000 bushels of wheat.

2. A situation where one country does not engage in trade with other.

Step-by-step explanation:

Autarky simply refers to an economy that's self sufficient and doesn't depend on other economies and doesn't trade with them.

1. The largest amount of wheat that the United States can consume every week will be 1000 bushels of wheat. This is because in autarky, nations won't engage in trading so whatever quantity of whameat that's produced will be consumed.

2. Autarky situation where one country does not engage in trade with other. Therefore, the correct option is D.

Answer 2

1. 1,000 bushels of wheat

2. d) A situation where one country does not engage in trade with other

Step-by-step explanation:

1 & 2. Autarky refers to a situation where a country does not engage in trade with other countries but rather relies on its own production capacities to feed the consumption in the country.

Autarkies in the current world are not a thing because countries trade with each other. Even North Korea trades with Russia, China and others.

In an Autarky situation therefore, the United States would only be able to consume the wheat that it produces itself which according to the question is 1,000 bushels of wheat.