Figure 34-6
?

From Figure 34-6, one can infer that

A. Honduras will be willing to trade bananas for corn at a unit ratio of no less than 2 corn:1 banana.
B. Honduras will be willing to trade bananas as long as the unit exchange ratio is greater than 1/2 corn:1 banana.
C. Honduras has no potential to gain from trade.
D. Honduras will be unwilling to trade at an exchange ratio.


Answer: B

Economics

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