Multiple Choice

-Exhibit EE-2 depicts the production possibilities curves of wheat and corn for Nabia and Pada. If these countries engage in trade, the exchange rate corn for wheat or wheat forcorn must fall between
A) 1 corn = 4 wheat to 1 corn = 3 wheat
B) 1 wheat = 4 corn to 1 wheat = 3 corn
C) one-third corn = 1 wheat to 1 corn = 1 wheat
D) one-third wheat = 1 corn to one-fourth wheat = 1 corn
E) 1 corn = 1 wheat to one-half corn = 1 wheat
Correct Answer:
Verified
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