Below Is Some Hypothetical Data for the Countries of Canada

question 151

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.Which of the following would be feasible terms of trade between the two countries?

• A)1 bushel of beans = 2 bushels of rye.
• B)1 bushel of beans = 0.4 bushels of rye.
• C)1 bushel of beans = 1.25 bushels of rye.
• D)1 bushel of beans = 4 bushels of rye.

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