Suppose That a Country in the Classical Model Has the Following

Multiple Choice

Suppose that a country in the Classical model has the following production-possibilities frontier (PPF) :

If, in autarky, the country is producing 700 computers and is located at point M on the PPF, the country would be producing __________ autos. If the country is now opened to trade at a terms of trade of 1 auto: 2 computers (or 1 computer: 0.5 auto) , it would export __________.

A) 120; autos
B) 120; computers
C) 280; autos
D) 280; computers