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Refer to the Diagrams Below

Question 68

Multiple Choice

Refer to the diagrams below.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The trading possibilities curves suggest that the terms of trade are: Refer to the diagrams below.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The trading possibilities curves suggest that the terms of trade are:   A) 1.5 beers for 1 pizza. B) 1 beer for 2 pizzas. C) 2 beers for 1 pizza. D) 1 beer for 1.5 pizzas.


A) 1.5 beers for 1 pizza.
B) 1 beer for 2 pizzas.
C) 2 beers for 1 pizza.
D) 1 beer for 1.5 pizzas.

Correct Answer:

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