The Following Data Outline Production Choices (A or B) in Two

question 29

Multiple Choice

The following data outline production choices (A or B) in two nations, Landia and Scandia. Landia has a workforce of 12 and Scandia has a workforce of 10.

$$\begin{array} { | l | c | c | c | c | c | c | } \hline { \text { Output per worker in Landia } } & & && { \text { Output per worker in Scandia } } \\\hline & \mathrm { A } & \mathrm { B } & & & \mathrm { A } & \mathrm { B } \\\hline \text { Fish } & 8 & 0 & & \text { Fish } & 16 & 0 \\\hline \text { Chips } & 0 & 40 & & \text { Chips } & 0 & 48 \\\hline\end{array}$$

-Which of the following would be feasible terms of trade between Landia and Scandia?

• A)1 fish for 4 chips
• B)1 fish for 6 chips
• C)1 fish for 7 chips
• D)2 fish for 4 chips
• E)8 chips for 1 fish

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