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You Are the Minister of Trade for a Small Island

Question 95

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You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above.Both islands specialize exclusively in the product for which they have a comparative advantage.You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish.After the trade the other island has a total of _____ coconuts and _____ fish. A) 850;1,200 B) 500;1,200 C) 350;1,500 D) 350;1,200
You are negotiating a deal with a neighboring island that has the following annual PPC: You are the Minister of Trade for a small island country in the South Pacific with the following annual production possibilities curve: You are negotiating a deal with a neighboring island that has the following annual PPC: Refer to the figure above.Both islands specialize exclusively in the product for which they have a comparative advantage.You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish.After the trade the other island has a total of _____ coconuts and _____ fish. A) 850;1,200 B) 500;1,200 C) 350;1,500 D) 350;1,200
Refer to the figure above.Both islands specialize exclusively in the product for which they have a comparative advantage.You have agreed to sell the other island 350 coconuts in exchange for 1,300 fish.After the trade the other island has a total of _____ coconuts and _____ fish.


A) 850;1,200
B) 500;1,200
C) 350;1,500
D) 350;1,200

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