Below Is Production Possibilities Data for the Countries of Mental

question 66

Multiple Choice

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,who were producing at combination D before trade,now 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 gains from trade for each country?

• A)Mental gains 30 million units of rice cakes and Etheric gains 45 million units of soya milk.
• B)Mental gains 45 million units of rice cakes and Etheric gains 30 million units of soya milk.
• C)Mental gains 15 million units of soya milk and Etheric gains 45 million units of soya milk.
• D)Mental gains 15 million units of soya milk and Etheric gains 5 million units of soya milk.
• E)Mental gains 15 million units of soya milk and Etheric gains 5 million units of rice cakes.

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Definitions:

Sudden Infant Death Syndrome

A mysterious and tragic condition where an infant dies unexpectedly, typically during sleep, with no clear cause even after a thorough investigation.

Concept Formation

The process of organizing information into categories and forming general ideas or concepts based on common features.

Developing Hypothesis

The process of formulating a testable statement or prediction that can be verified through empirical research, often as the initial step in scientific inquiry.

Collected Data

Information gathered through observation, experiments, or other methods, used for analysis or to inform decisions.