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The Accompanying Tables Give Production Possibilities Data for Gamma and Sigma

Question 20

Multiple Choice

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities
ABCDE Tea 1209060300 Pots 0306090120\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Tea } & 120 & 90 & 60 & 30 & 0 \\\hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\\hline\end{array} Sigma's production possibilities
ABCDE Tea 403020100 Pots 0306090120\begin{array}{c|c|c|c|c|c} & \mathrm{A} & \mathrm{B} & \mathrm{C} & \mathrm{D} & \mathrm{E} \\\hline \text { Tea } & 40 & 30 & 20 & 10 & 0 \\\hline \text { Pots } & 0 & 30 & 60 & 90 & 120 \\\hline\end{array} What are the limits of the terms of trade between Gamma and Sigma?


A) 1 tea = 2 pots to 1 tea = 6 pots
B) 1 tea = 3 pots to 1 tea = 6 pots
C) 1 tea = 2 pots to 1 tea = 3.5 pots
D) 1 tea = 1 pot to 1 tea = 3 pots

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