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You Are the Minister of Trade for a Small Island

Question 84

Multiple Choice

You are the Minister of Trade for a small island country with the following annual PPC: You are the Minister of Trade for a small island country with the following annual PPC:   You are negotiating a trade agreement with a neighboring island with the following annual PPC:   If you offer to give the other island 1 coconut for every 4 fish they give you, then they will: A) refuse your offer because they have a comparative advantage in fish. B) accept your offer because your opportunity cost of a coconuts is less than 4 fish. C) refuse your offer because they can produce as many coconuts as you can. D) accept your offer because their opportunity cost of a coconut is greater than 4 fish. You are negotiating a trade agreement with a neighboring island with the following annual PPC:
You are the Minister of Trade for a small island country with the following annual PPC:   You are negotiating a trade agreement with a neighboring island with the following annual PPC:   If you offer to give the other island 1 coconut for every 4 fish they give you, then they will: A) refuse your offer because they have a comparative advantage in fish. B) accept your offer because your opportunity cost of a coconuts is less than 4 fish. C) refuse your offer because they can produce as many coconuts as you can. D) accept your offer because their opportunity cost of a coconut is greater than 4 fish. If you offer to give the other island 1 coconut for every 4 fish they give you, then they will:


A) refuse your offer because they have a comparative advantage in fish.
B) accept your offer because your opportunity cost of a coconuts is less than 4 fish.
C) refuse your offer because they can produce as many coconuts as you can.
D) accept your offer because their opportunity cost of a coconut is greater than 4 fish.

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