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Answer the Next Three Questions Using the Following Diagrams

Question 9

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Answer the next three questions using the following diagrams.
Answer the next three questions using the following diagrams.    -If the actual terms of trade between the two countries were that one ton of olive oil is exchanged for one and one-half tons of chocolate, which of the following statements is correct with respect to complete specialization and trade? A)  France's trading possibilities curve will be anchored at 45 tons of olive oil. B)  Greece's trading possibilities curve will be anchored at 45 tons of olive oil. C)  Greece's trading possibilities curve will located at 30 tons of chocolate. D)  People in France will have to use a lot less olive oil.
-If the actual terms of trade between the two countries were that one ton of olive oil is exchanged for one and one-half tons of chocolate, which of the following statements is correct with respect to complete specialization and trade?


A) France's trading possibilities curve will be anchored at 45 tons of olive oil.
B) Greece's trading possibilities curve will be anchored at 45 tons of olive oil.
C) Greece's trading possibilities curve will located at 30 tons of chocolate.
D) People in France will have to use a lot less olive oil.

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