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Refer to the Accompanying Production Possibilities Tables

Question 209

Multiple Choice

                   Germany Production Possibilities                            (Production Alternatives)   Product ABCDEF Autos 048121620 Chemicals 4032241680                        U.S. Production Possibilities                            (Production Alternatives)   Product ABCDEF Autos 03691215 Chemicals 60483624120\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~\text { Germany Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 4 & 8 & 12 & 16 & 20 \\\hline \text { Chemicals } & 40 & 32 & 24 & 16 & 8 & 0 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~\text { U.S. Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 3 & 6 & 9 & 12 & 15 \\\hline \text { Chemicals } & 60 & 48 & 36 & 24 & 12 & 0 \\\hline\end{array}\end{array} Refer to the accompanying production possibilities tables. Data are in millions of units. If Germany and the United States engage in trade, the mutually bene?cial terms of trade will be between


A) 3 and 4 units of autos for 1 unit of chemicals.
B) 2 and 4 units of autos for 1 unit of chemicals.
C) 2 and 4 units of chemicals for 1 unit of autos.
D) 0.33 and 0.5 units of autos for 1 unit of chemicals.

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