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Samoa Could Produce Either 3 Coconuts or 12 Pineapples Per

Question 119

Multiple Choice

Samoa could produce either 3 coconuts or 12 pineapples per worker, while Guam could produce either 5 coconuts or 20 pineapples per worker. In this situation:


A) ​if trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
B) ​Guam will be better off if it exports coconuts and imports pineapples.
C) ​both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
D) ​mutually beneficial trade cannot occur.

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