Multiple Choice
-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Free trade between these two countries will take place
A) as long as Canada is willing to give up 0.25 unit of clothing to get a unit of food.
B) as long as USA asks for at least 1.5 units of clothing in exchange for a unit of food.
C) as long as Canada asks for at least 3 units of food in exchange for a unit of clothing.
D) as long as USA is willing to give up at least 1.5 units of food in exchange for a unit of clothing.
Correct Answer:

Verified
Correct Answer:
Verified
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