The production possibility frontiers of Northland and Southland are given.Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas.Could they increase their consumption bundle by changing production and trading?
A)No; Southland does at least as well at producing both, so it would have no incentive to trade.
B)Yes; they could gain 75 bananas and 60 apples.
C)Yes; they could gain up to 60 apples without losing bananas
D)Yes; they could gain up to 15 bananas without losing apples.

Question

The production possibility frontiers of Northland and Southland are given.Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas.Could they increase their consumption bundle by changing production and trading? 
A)No; Southland does at least as well at producing both, so it would have no incentive to trade. 
B)Yes; they could gain 75 bananas and 60 apples. 
C)Yes; they could gain up to 60 apples without losing bananas 
D)Yes; they could gain up to 15 bananas without losing apples.

Quizplus · Accepted Answer

The Answer of The production possibility frontiers of Northland and Southland are given.Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas.Could they increase their consumption bundle by changing production and trading? 
A)No; Southland does at least as well at producing both, so it would have no incentive to trade. 
B)Yes; they could gain 75 bananas and 60 apples. 
C)Yes; they could gain up to 60 apples without losing bananas 
D)Yes; they could gain up to 15 bananas without losing apples.

The Production Possibility Frontiers of Northland and Southland Are Given