Below Is Production Possibilities Data for the Countries of Mental

Multiple Choice

Below is production possibilities data for the countries of Mental and Etheric.

-Refer to the information above to answer this question.Suppose that the two countries specialize and trade in the products in which they have a comparative advantage and establish the terms of trade at 1 unit of rice cake = 1.5 units of soya milk.If Etheric exports 30 million units of rice cakes to Mental,what will be the consumption combinations for Mental?

A) 30 million units of soya milk and 55 million units of rice cakes.
B) 45 million units of soya milk and 90 million units of rice cakes.
C) 35 million units of soya milk and 30 million units of rice cakes.
D) 90 million units of soya milk and 45 million units of rice cakes.
E) 10 million units of soya milk and 30 million units of rice cakes.