Suppose That Leslie and Hussein Can Either Make Salads or Grill

question 13

Multiple Choice

Suppose that Leslie and Hussein can either make salads or grill steaks. Their maximum outputs per hour are listed in the following table. Given the same quantity of resources, at what terms of trade relative price ratio) could they specialize and trade so that both consume outside their own production possibilities frontiers PPFs) ? $$\begin{array} { l l l l l } & \begin{array} { l } \text { Maximum } \\\text { Number of Salads }\end{array} & \begin{array} { l } \text { Opportunity Cost of } 1 \text { Salad }\end{array} & \begin{array} { l } \text { Maximum } \\\text { Number of Steaks }\end{array} & \begin{array} { l } \text { Opportunity Cost } \\\text { of 1 Steak }\end{array} \\\hline \text { Leslie } & 9 & 1 / 3 \text { steak } & 3 & 3 \text { salads } \\\text { Hussein } & 12 & 1 / 2 \text { steak } & 6 & 2 \text { salads } \\\hline\end{array}$$

• A) 1 salad per 1 steak
• B) 2 salads per 1 steak
• C) 2.5 salads per 1 steak
• D) 3 salads per 1 steak
• E) 3.5 salads per 1 steak

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Definitions:

Money Orders

A financial instrument issued by a bank or postal service that allows the person named on the order to receive a specified amount of cash on demand, often used for payments when checks are not accepted.

Branch Banking

Banking operations in which a financial institution operates multiple branches, each providing banking services to customers.

Interest Rate Changes

Variations in the cost of borrowing money, often influenced by central banking policy to control inflation and economic growth.

Demand For Money

This represents the inverse relationship between the level of money balances and the price of holding money balances.