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 the other island has a total of ______ coconuts and ______ fish.
A) 850; 1,200
B) 500; 1,200
C) 350; 1,500
D) 350; 1,200
Correct Answer:

Verified
Correct Answer:
Verified
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