Suppose That a Worker in Country a Can Make Either

question 7

Multiple Choice

Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.Suppose Country A specializes in bananas,and Country B specializes in tomatoes.The limits to the terms of trade that Country A would find acceptable are Country A will give no:

• A) more than 5 bananas for each tomato.
• B) less than 5 bananas for each tomato.
• C) more than 1 tomato for every 5 bananas.
• D) less than 1 tomato for every 5 bananas.

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