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If Nations Quirk and Turk Only Produce Aluminum or Oil

Question 236

Multiple Choice

If Nations Quirk and Turk only produce aluminum or oil, the accompanying table shows the maximum output of each nation. If Nations Quirk and Turk only produce aluminum or oil, the accompanying table shows the maximum output of each nation.   Which one of the following terms of trade is most likely to produce mutually beneficial exchange between the two nations? A) 0.5 unit of oil for 1 unit of aluminum B) 0.5 unit of oil for 2 units of aluminum C) 1 unit of oil for 0.4 unit of aluminum D) 1 unit of oil for 4 units of aluminum Which one of the following terms of trade is most likely to produce mutually beneficial exchange between the two nations?


A) 0.5 unit of oil for 1 unit of aluminum
B) 0.5 unit of oil for 2 units of aluminum
C) 1 unit of oil for 0.4 unit of aluminum
D) 1 unit of oil for 4 units of aluminum

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