Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country's production possibilities frontiers, we know that would both agree to terms of trade of one truck to:



A. two cars.

B. four cars.

C. six cars.

D. eight cars.


B. four cars.

Economics

You might also like to view...

In the prisoners' dilemma game, each player has only one possible strategy

Indicate whether the statement is true or false

Economics

The process of countries becoming more open to foreign trade and investment is known as outsourcing

Indicate whether the statement is true or false

Economics

Every financial asset has a corresponding:

A. financial asset. B. real asset. C. financial liability. D. real liability.

Economics

Which of the following statements is FALSE?

A. If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static. B. A change in the demand for a product is caused by factors other than changes in the product's price. C. If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price. D. A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve.

Economics