Use the Production Possibilities Data Below for Honduras and Nicaragua

question 216

Multiple Choice

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s) .
Table 2-2

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

• A) Nicaragua trades one orange to Honduras for every one apple.
• B) Nicaragua trades one orange to Honduras for every two apples.
• C) Nicaragua trades one orange to Honduras for every three apples.
• D) Nicaragua trades one orange to Honduras for every four apples.

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