Multiple Choice
You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve:
You are negotiating a deal with a neighboring island that has the following annual PPC:
Refer to the figure above.Both islands specialize exclusively in the product for which they have a comparative advantage.You have agreed to sell the other island 350 coconuts 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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