Figure 3-2 Peru's Production Possibilities Frontier

Multiple Choice

Figure 3-2
Peru's Production Possibilities Frontier

-Refer to Figure 3-2.Suppose Madagascar is willing to trade 40 rubies to Peru for each emerald that Peru produces and sends to Madagascar.Which of the following combinations of emeralds and rubies could Peru then consume,assuming Peru specializes in emerald production?

A) 2 emeralds and 240 rubies
B) 3 emeralds and 220 rubies
C) 4 emeralds and 200 rubies
D) 5 emeralds and 140 rubies