Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true?
a. Mutually beneficial trade between Karl and Adam could take place at an exchange rate of 1 ton of apples to 1 1/2 ton of oranges.
b. Mutually beneficial trade between Karl and Adam could take place at an exchange rate

of 1 ton of oranges to 1 1/2 ton of apples.
c. both a. and b. are true.
d. neither a. nor b. are true.

c

Economics

You might also like to view...

Walmart wants to raise $250 million to finance the renovation of their retail stores, and the company wishes to raise the funds through indirect finance. Which of the following methods could it use?

A) It could issue $250 million in stock. B) It could sell $250 million in bonds. C) It could borrow $250 million from a bank. D) It could choose either A or B.

Economics

The proportion of the total population aged 0–15 and over 65, is known as the

(a) dependency burden. (b) unproductive population. (c) surplus labor. (d) population momentum.

Economics