Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1

-Refer to Table 2-1. Which of the following would be a mutually agreeable rate of exchange?
A) 1 Food = 1 Clothing
B) 1 Food = 2 Clothing
C) 1 Food = 3 Clothing
D) No exchange rate would be mutually agreeable.

Question

Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1
 
-Refer to Table 2-1. Which of the following would be a mutually agreeable rate of exchange?
A) 1 Food = 1 Clothing 
B) 1 Food = 2 Clothing 
C) 1 Food = 3 Clothing 
D) No exchange rate would be mutually agreeable.

Quizplus · Accepted Answer

The Answer of Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1
 
-Refer to Table 2-1. Which of the following would be a mutually agreeable rate of exchange?
A) 1 Food = 1 Clothing 
B) 1 Food = 2 Clothing 
C) 1 Food = 3 Clothing 
D) No exchange rate would be mutually agreeable.

Use the Production Possibilities Data Below for Austria and Italy