Refer to the Accompanying Production Possibilities Tables

question 241

Multiple Choice

$$\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~\text { Germany Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 4 & 8 & 12 & 16 & 20 \\\hline \text { Chemicals } & 40 & 32 & 24 & 16 & 8 & 0 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~\text { U.S. Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 3 & 6 & 9 & 12 & 15 \\\hline \text { Chemicals } & 60 & 48 & 36 & 24 & 12 & 0 \\\hline\end{array}\end{array}$$ Refer to the accompanying production possibilities tables. Data are in millions of units. Suppose that each nation specialized in producing the product for which it has a comparative advantage and the
Terms of trade were set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain
And consume a maximum combination of 8 million units of autos and

• A) 12 million units of chemicals.
• B) 24 million units of chemicals.
• C) 36 million units of chemicals.
• D) 48 million units of chemicals.

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