The Figure Above Show Liz's and Joe's Production Possibilities for Salads

question 94

Multiple Choice

The figure above show Liz's and Joe's production possibilities for Salads and Smoothies.
-Using the figure above,suppose with no trade Liz and Joe each produce at point A on their respective PPFs.Then,Liz suggests that they specialize and trade.She would produces only smoothies and Joe would produce only salads.Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie.In this scenario,

• A) Liz gains 10 smoothies and 5 salads, and Joe gains 5 smoothies.
• B) Liz gains 5 smoothies, and Joe gains 10 smoothies.
• C) Liz gains 10 smoothies, and Joe loses 5 smoothies.
• D) Liz gains 5 smoothies and 5 salads, and Joe loses 5 salads.
• E) None of the individuals gain from trade.

---

Definitions:

Hormones

Substances secreted by endocrine glands that control and influence numerous body functions and activities.

Neurotransmitters

Chemical substances that transmit signals across a synaptic gap from one neuron to another in the nervous system.

Bloodstream

The bloodstream is the flowing blood within the circulatory system of the body, responsible for transporting oxygen, nutrients, and waste products to and from body tissues.

Visual Field

The entire space observable in peripheral view when focusing the eye on a single central location.