SCENARIO: CHILE AND ARGENTINA

Multiple Choice

SCENARIO: CHILE AND ARGENTINA
Chile and Argentina each produce jellybeans and peanut butter, using
Labor as their only resource.Each country has 1,000 hours of labor.In
Chile, an hour produces a pound of jellybeans and 2 hours produce a
Pound of peanut butter.In Argentina, an hour produces a pound of
Jellybeans and 3 hours produces a pound of peanut butter.When they do
Not trade with each other, Chile consumes 600 pounds of jellybeans and
200 pounds of peanut butter, and Argentina consumes 400 pounds of
Jellybeans and 200 pounds of peanut butter.
Reference: Ref 2­10
(Scenario: Chile and Argentina) What is the price of peanut butter in
Argentina before the two countries begin to trade with each other?

A) 1/3 pound of jellybeans per pound of peanut butter
B) 1/2 pound of jellybeans per pound of peanut butter
C) 2 pounds of jellybeans per pound of peanut butter
D) 3 pounds of jellybeans per pound of peanut butter