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Suppose That a Worker in Country a Can Produce Either

Question 61

Multiple Choice

Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Country A specializes in producing bananas and Country B specializes in producing tomatoes. Regarding the terms of trade, Country A will give no _____ than _____ for every _____.


A) more; 5 bananas; one tomato
B) less; 5 bananas; one tomato
C) more; 1 tomato; 5 bananas
D) less; 1 tomato; 5 bananas

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