Questions: Michigan Has Surplus Autos Wants Lettuce Texas Has Surplus Lettuce Washington Wants Apples Has Surplus Apples Wants Autos Given the information, and assuming trade occurs between the three states, we can expect money to flow counter clockwise from Michigan to Texas to Washington. that there is no means by which Michigan can obtain lettuce while specializing in the production of autos. that money will not be needed to accomplish the desired exchanges. money to flow clockwise from Michigan to Washington to Texas.

Michigan Has Surplus Autos Wants Lettuce

Texas Has Surplus Lettuce

Washington Wants Apples
Has Surplus Apples
Wants Autos

Given the information, and assuming trade occurs between the three states, we can expect
money to flow counter clockwise from Michigan to Texas to Washington.
that there is no means by which Michigan can obtain lettuce while specializing in the production of autos.
that money will not be needed to accomplish the desired exchanges.
money to flow clockwise from Michigan to Washington to Texas.
Transcript text: Michigan Has Surplus Autos Wants Lettuce Texas Has Surplus Lettuce Washington Wants Apples Has Surplus Apples Wants Autos Given the information, and assuming trade occurs between the three states, we can expect money to flow counter clockwise from Michigan to Texas to Washington. that there is no means by which Michigan can obtain lettuce while specializing in the production of autos. that money will not be needed to accomplish the desired exchanges. money to flow clockwise from Michigan to Washington to Texas.
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Solution

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The answer is the third one: that money will not be needed to accomplish the desired exchanges.

Explanation for each option:

  1. Money to flow counter clockwise from Michigan to Texas to Washington.
    This option suggests a specific flow of money, but the scenario describes a barter system where goods are exchanged directly without the need for money. Therefore, this option is incorrect.

  2. That there is no means by which Michigan can obtain lettuce while specializing in the production of autos.
    This option is incorrect because Michigan can obtain lettuce by trading its surplus autos with Texas, which has a surplus of lettuce. Specialization in autos does not prevent Michigan from obtaining lettuce through trade.

  3. That money will not be needed to accomplish the desired exchanges.
    This option is correct. The scenario describes a barter system where states exchange goods directly. Michigan can trade autos for lettuce with Texas, and Washington can trade apples for autos with Michigan. This direct exchange of goods eliminates the need for money.

  4. Money to flow clockwise from Michigan to Washington to Texas.
    Similar to the first option, this suggests a specific flow of money, but the scenario is based on direct barter exchanges, making this option incorrect.

In summary, the correct interpretation of the scenario is that the states can engage in direct barter trade, making the use of money unnecessary for these exchanges.

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