Refer to the Accompanying Production Possibilities Tables

question 333

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. If Germany and the United States engage in trade, the mutually bene?cial terms of trade will be between

• A) 3 and 4 units of autos for 1 unit of chemicals.
• B) 2 and 4 units of autos for 1 unit of chemicals.
• C) 2 and 4 units of chemicals for 1 unit of autos.
• D) 0.33 and 0.5 units of autos for 1 unit of chemicals.

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