Refer to the Diagrams Below

Multiple Choice

Refer to the diagrams below.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The trading possibilities curves suggest that the terms of trade are:

A) 1.5 beers for 1 pizza.
B) 1 beer for 2 pizzas.
C) 2 beers for 1 pizza.
D) 1 beer for 1.5 pizzas.