Use the Production Possibilities Data Below for Austria and Italy

question 237

Multiple Choice

Use the production possibilities data below for Austria and Italy to answer the following question(s) .
Table 2-1

-Refer to Table 2-1. Which of the following would be a mutually agreeable rate of exchange?

• A) 1 Food = 1 Clothing
• B) 1 Food = 2 Clothing
• C) 1 Food = 3 Clothing
• D) No exchange rate would be mutually agreeable.

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