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Refer to the Accompanying Production Possibilities Tables

Question 246

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  Refer to the accompanying production possibilities tables. Data are in millions of units. Suppose that each nation specialized in producing the product for which it has a comparative advantage and the terms of trade were set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and A) 12 million units of chemicals. B) 24 million units of chemicals. C) 36 million units of chemicals. D) 48 million units of chemicals. Refer to the accompanying production possibilities tables. Data are in millions of units. Suppose that each nation specialized in producing the product for which it has a comparative advantage and the terms of trade were set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and


A) 12 million units of chemicals.
B) 24 million units of chemicals.
C) 36 million units of chemicals.
D) 48 million units of chemicals.

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