Answer the Question on the Basis of the Following Production

question 1

Multiple Choice

Answer the question on the basis of the following production possibilities data for Gamma and Sigma.All data are in tons. Gamma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$
Sigma's production possibilities: $\begin{array}{llcc}&\underline{\text { A } }&\underline{\text {B}}&\underline{\text { C} } &\underline{\text { D } }&\underline{\text {E}}\\\text { Tea } &120&90&60&30&0\\\text { Pots}&0&30&60&90&120\end{array}$
Refer to the given data.What are the limits of the terms of trade between Gamma and Sigma?

• A) 1 tea = 2 pots to 1 tea = 6 pots
• B) 1 tea = 3 pots to 1 tea = 6 pots
• C) 1 tea = 2 pots to 1 tea = 3.5 pots
• D) 1 tea = 1 pot to 1 tea = 3 pots

---

Definitions:

State And Local Levels

Refers to the administrative or government divisions below the national level, including states, provinces, counties, and municipalities, each with its own set of laws and regulations.

Education

Education involves the process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various methods such as teaching, training, storytelling, discussion, and directed research.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, primarily used to fund transportation projects.

Taxation Principle

Guidelines and theories in economics that outline how to structure taxes to achieve certain economic objectives, such as fairness, efficiency, and simplicity.