Assume That the World Economy Consists of Two Countries: Russia

question 11

Multiple Choice

Assume that the world economy consists of two countries: Russia and Republic of Belarus. Each country can produce tomatoes and potatoes. Russia can produce 1000 tons of tomatoes or 3000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 3 × tomatoes = 3000. Republic of Belarus can produce 500 tons of tomatoes or 1000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 2 × tomatoes = 1000. Countries can freely trade with each other.
-If the total world production of potatoes is 2000 tons,how much tomatoes will be produced in Russia?

• A) 1000 tons
• B) 500 tons
• C) 666.67 tons
• D) 333.33 tons

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