The Accompanying Figures Depict the Production Possibilities Frontiers (PPFs) for Two

question 6

Multiple Choice

The accompanying figures depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. If Jim and Pam were to specialize and trade, at what exchange rate would they find some quantity of trade to be mutually beneficial?

• A) 3 pizzas for 1 stromboli
• B) 1 pizza for 1 stromboli
• C) 10 pizzas for 2 stromboli
• D) 1 pizza for 1/2 stromboli
• E) 1 pizza for 1/4 stromboli

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Definitions:

Manumission

The act of a slave owner freeing their slaves; historically common prior to the abolition of slavery.

Louisiana Transfer

Refers to the acquisition of the Louisiana territory by the United States from France in 1803, commonly known as the Louisiana Purchase.

Dutch New Netherland

The 17th-century colonial province of the Dutch Republic that included parts of modern-day New York, New Jersey, Delaware, and Connecticut.

Dutch Authorities

Refers to the officials and institutions responsible for governing and managing the Netherlands, as well as Dutch colonies in historical contexts.