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Suppose the Figure Shown Represents the Production Possibilities Frontier for Country

Question 130

Multiple Choice

  Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to give 3 TVs to Country A for every cellphone it receives. Assuming Country A fully specializes in cellphone production, which of the following combinations of goods could Country A now consume that it could not achieve before trade? A)  (300 cellphones, 1,000 TVs)  B)  (800 cellphones, 1,600 TVs)  C)  (600 cellphones, 800 TVs)  D)  (400 cellphones, 1,200 TVs) Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to give 3 TVs to Country A for every cellphone it receives. Assuming Country A fully specializes in cellphone production, which of the following combinations of goods could Country A now consume that it could not achieve before trade?


A) (300 cellphones, 1,000 TVs)
B) (800 cellphones, 1,600 TVs)
C) (600 cellphones, 800 TVs)
D) (400 cellphones, 1,200 TVs)

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