Table 14-3
Karl can produce either 10 tonnes of oranges or 5 tonnes of apples in a year, while Adam can produce either 5 tonnes of oranges or 10 tonnes of apples.
-Refer to Table 14-3.What exchange rate results in mutually beneficial trade between Karl and Adam?
A) 1 tonne of oranges to 2 tonnes of apples
B) 1 tonne of apples to 0.5 tonnes of oranges
C) 1 tonne of apples to 1.5 tonnes of oranges
D) 1 tonne of apples to 2 tonnes of oranges
Correct Answer:
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Alpha can produce either 18 oranges
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Q38: Table 14-3
Karl can produce either 10 tonnes
Q39: Table 14-3
Karl can produce either 10 tonnes
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