You Are the Minister of Trade for a Small Island

Multiple Choice

You are the Minister of Trade for a small island country with the following annual PPC: You are negotiating a trade agreement with a neighboring island with the following annual PPC: Both islands specialize exclusively in the product for which they have a comparative advantage. You have agreed to give 350 coconuts to the other island in exchange for 1,300 fish. After the trade, your island has a total of ______ coconuts and ______ fish.

A) 150; 2,800
B) 500; 1,300
C) 150; 1,300
D) 500; 1,500