Multiple Choice
Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Country B specializes in producing tomatoes and Country A specializes in producing bananas. What terms of trade would both countries be willing to agree to?
A) One tomato for one banana
B) One tomato for two bananas
C) One tomato for four bananas
D) One tomato for six bananas
Correct Answer:
Verified
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