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At What Terms of Trade (Relative Price Ratio)could They Specialize

Question 34

Multiple Choice

At what terms of trade (relative price ratio) could they specialize and trade with one another so that both have more trees planted and mulch spread than they could accomplish on their own?


A) 12 trees planted per 12 cubic yards of mulch spread
B) 10 trees planted per 12 cubic yards of mulch spread
C) 9 trees planted per 12 cubic yards of mulch spread
D) 7 trees planted per 12 cubic yards of mulch spread
E) 5 trees planted per 12 cubic yards of mulch spread

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