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The Diagram Below Shows Robinson Crusoe's Annual Production Possibilities Boundary

Question 124

Multiple Choice

The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts. The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts.   FIGURE 32-3 Refer to Figure 32-3.Suppose a trading partner offers to give coconuts to Robinson Crusoe in exchange for his bananas.If Robinson Crusoe is to improve his consumption possibilities,the terms of trade must be 1 kg coconuts for A) 5 kg bananas. B) 4 kg bananas. C) 3 kg bananas. D) 2 kg bananas. E) 1 kg bananas. FIGURE 32-3 Refer to Figure 32-3.Suppose a trading partner offers to give coconuts to Robinson Crusoe in exchange for his bananas.If Robinson Crusoe is to improve his consumption possibilities,the terms of trade must be 1 kg coconuts for


A) 5 kg bananas.
B) 4 kg bananas.
C) 3 kg bananas.
D) 2 kg bananas.
E) 1 kg bananas.

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