What three factors constitute an MSA?

1 answer:

7 0

An MSA is known to be Metropolitan Statistical Areas. It is said to be made up of one or more counties that has a city of 50,000 or more people in it.

It is said to be seen in a Census Bureau-defined urbanized area (UA) and they have a full population of at about 100,000.

<h3>What determines an MSA?</h3>

Metropolitan statistical areas (MSA) are said to be delineated by the U.S. OMB as they are known to have about one urbanized area.

It is known to be a region that is made up of of a city and surrounding communities that are related by social and economic factors.

Learn more about Metropolitan statistical areas from

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Assume that the United States and India enjoy constant opportunity costs in the production possibilities shown in the table.

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The nation that has the absolute advantage in peanuts is India.

<h3>How to solve for the absolute advantage of these countries</h3>

a. The country that has the absolute advantage in the pounds of peanuts is India. They are able to produce 10 million worth of the product.

b. This is in the attachment

c. From the calculated opportunity costs, India has been shown to have the comparative advantage in peanuts so they have to specialize here.

The US on the other hand has to specialize in pecans because they have the comparative advantage in it.

d) The PPC for each country is a diagram

e. ) The terms of trade would be a pound of peanut for a pound of pec an for the countries.

Based on this the US would produce 10 units for pecans. They would use 5 units and exchange the remaining 5 units of pecans for 5 units of peanuts from India.

India is also going to do likewise.

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