The Accompanying Figures Depict the Production Possibilities Frontiers (PPFs)for Two

question 92

Multiple Choice

The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli.If Jim and Pam were to specialize and trade,at what exchange rate would they find some quantity of trade to be mutually beneficial?

• A)3 pizzas for 1 stromboli
• B)1 pizza for 1 stromboli
• C)10 pizzas for 2 stromboli
• D)1 pizza for 1/2 stromboli
• E)1 pizza for 1/4 stromboli

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