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Refer to the Accompanying Production Possibilities Tables

Question 64

Multiple Choice

  Refer to the accompanying production possibilities tables. Data are in millions of units. If Germany and the United States engage in trade, the mutually beneficial terms of trade will be between A) 3 and 4 units of autos for 1 unit of chemicals. B) 2 and 4 units of autos for 1 unit of chemicals. C) 2 and 4 units of chemicals for 1 unit of autos. D) 0.33 and 0.5 units of autos for 1 unit of chemicals. Refer to the accompanying production possibilities tables. Data are in millions of units. If Germany and the United States engage in trade, the mutually beneficial terms of trade will be between


A) 3 and 4 units of autos for 1 unit of chemicals.
B) 2 and 4 units of autos for 1 unit of chemicals.
C) 2 and 4 units of chemicals for 1 unit of autos.
D) 0.33 and 0.5 units of autos for 1 unit of chemicals.

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