Below is production possibilities data for the countries of Mental and Etheric.

-Refer to the information above to answer this question.Suppose that the two countries specialize and engage in free trade and establish the terms of trade at 1 unit of rice cake = 1.5 units of soya milk.If Etheric exports 30 million units of rice cakes to Mental,what will be the consumption combinations for Etheric?
A) 30 million units of soya milk and 55 million units of rice cakes.
B) 45 million units of soya milk and 90 million units of rice cakes.
C) 55 million units of soya milk and 30 million units of rice cakes.
D) 90 million units of soya milk and 45 million units of rice cakes.
E) 10 million units of soya milk and 30 million units of rice cakes.
Correct Answer:
Verified
Q54: What term describes the average price of
Q55: The chart below refers to the economy
Q56: Below is production possibilities data for the
Q57: What is the formula for the terms
Q58: Below is production possibilities data for the
Q60: All of the following,except one,are reasons why
Q61: All the following,except one,are examples of trade
Q62: Below is the total market demand and
Q63: What is the term for the policy
Q64: Below is the total market demand and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents