Production Possibilities Data for Gamma and Sigma

question 157

Multiple Choice

Production possibilities data for Gamma and Sigma.All data are in tons.
Gamma production possibilities:
Sigma production possibilities:

-Refer to the above 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

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Definitions:

Federal Government Spending

The expenditure of the central government on goods, services, and obligations, including defense, education, and welfare.

Income Transfers

Payments made from one individual or group to another without an exchange of goods or services, typically aimed at reducing economic inequality, such as social security payments.

Government Income Transfers

Government income transfers are payments made by the government to individuals without any goods or services being returned in exchange, aimed at redistributing wealth and supporting those in need.

National Income

The total value of all goods and services produced by a country's economy over a specific period, accounting for income from foreign sources.