The Accompanying Tables Give Production Possibilities Data for Gamma and Sigma

question 316

Multiple Choice

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons.
Gamma's production possibilities
$\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 120 & 90 & 60 & 30 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$
Sigma's production possibilities
$\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 40 & 30 & 20 & 10 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ What are the limits of the terms of trade between Gamma and Sigma?

• A) 1 tea = 2 pots to 1 tea = 6 pots
• B) 1 tea = 3 pots to 1 tea = 6 pots
• C) 1 tea = 2 pots to 1 tea = 3.5 pots
• D) 1 tea = 1 pot to 1 tea = 3 pots

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Definitions:

Presence of a Problem

The situation in which an issue or challenge exists, requiring attention or resolution.

Intuitive Thinkers

Intuitive thinkers are individuals who rely on intuition and gut feelings to make decisions and solve problems, often focusing on the big picture and possibilities rather than detailed processes.

Problem Situation

A scenario in which a discrepancy exists between the current state and the desired state, necessitating a solution.

Alternatives

Different options or choices available in a given situation, allowing for a range of outcomes based on different decisions.