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Table 14-3 Karl Can Produce Either 10 Tonnes of Oranges or 5

Question 40

Multiple Choice

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

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