Multiple Choice
Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)
-Refer to the information above to answer this question.Which of the following would be feasible terms of trade between the two countries?
A) 1 bushel of beans = 2 bushels of rye.
B) 1 bushel of beans = 0.4 bushels of rye.
C) 1 bushel of beans = 1.25 bushels of rye.
D) 1 bushel of beans = 4 bushels of rye.
Correct Answer:

Verified
Correct Answer:
Verified
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