ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To exchange their resources for something they need
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They like to share.
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They do not want so much fruit.
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To show that they are great farmers
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Detailed explanation-1: -In 2021, of the $384.7 billion in U.S. imports from Mexico, the top commodity sectors were Machinery and Mechanical Appliances (36.7%), Transportation Equipment (24.8%), and Agricultural Goods (10.1%). In 2021, Mexico is the No. 1 trading partner in terms of trading value, followed by Canada and China.
Detailed explanation-2: -Avocadoes, limes, strawberries, raspberries, and grapes are some fruits exported to the United States, whereas bell peppers and tomatoes are the main vegetables exported. The trade agreement, USMCA, and Mexico’s proximity to the United States are prime reasons for such huge exports to the United States.
Detailed explanation-3: -In 2021, Mexico was the top export market for U.S. dairy, wheat, poultry, dried distiller grains soluble (DDGs), and rice. Mexico is also the second-largest U.S. export market for many other important agricultural commodities including corn, soybean, soybean meal, fresh fruit and vegetables.
Detailed explanation-4: -Increased Sales: Nearly 95% of the world’s population resides outside of the United States, which means the additional sales growth is very likely from exporting. Economies of Scale: By producing at capacity, fixed costs are lowered per unit, especially if little or no adaptation is required.