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 engage in free trade 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 Etheric?
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) 55 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.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: Table 13.14 shows the output of kumquats
Q31: Which of the following would cause the
Q32: Table 13.14 shows the output of kumquats
Q33: Table 13.14 shows the output of kumquats
Q34: Suppose that the maximum output in the
Q36: Table 13.14 shows the output of kumquats
Q37: Table 13.14 shows the output of kumquats
Q38: Below is some hypothetical data for the
Q39: Table 13.14 shows the output of kumquats
Q40: Table 13.14 shows the output of kumquats