Using the Figure Above,suppose with No Trade Liz and Joe

question 101

Multiple Choice

Using the figure above,suppose with no trade Liz and Joe each produce at point A on their respective PPFs.Then,Joe suggests that they specialize and trade.He would produces only salads and Liz would produce only smoothies.Then,Joe says,he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie.Liz should

• A) accept Joe's offer since she will gain 4 smoothies and 4 salads.
• B) accept Joe's offer as she will be as well off as with no trade.
• C) not accept Joe's offer as the price he offers is too low for her to gain from trade.
• D) not accept Joe's offer since she would lose 2 smoothies and 2 salads.
• E) accept Joe's offer since she will gain 4 salads.

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Definitions:

Red-Figure Style

An ancient Greek vase-painting technique where red figures are painted against a black background, a reversal of the earlier black-figure style.

Black-Figure Style

An ancient Greek pottery decoration technique where silhouetted black figures were painted against a red clay background.

Greek Vase Painting

An art form where scenes from mythology, daily life, and athletics were painted on ceramic vessels in ancient Greece.

Classical Period

A term referring to the height of Greek and Roman cultural and artistic achievement, roughly from the 5th century BCE to the 4th century CE.