5. Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft. The table below shows output rates per day in the two countries if all resources are fully and efficiently employed. Use this information to answer the question. |Carpets Fighter aircraft Afghanistan 100 US 500 25
5. Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft. The table below shows output rates per day in the two countries if all resources are fully and efficiently employed. Use this information to answer the question. |Carpets Fighter aircraft Afghanistan 100 US 500 25
Chapter1: Making Economics Decisions
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![5. Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.
The table below shows output rates per day in the two countries if all resources are fully and efficiently
employed. Use this information to answer the question.
Carpets
Fighter aircraft
Afghanistan
100
US
500
25
An appropriate international exchange ratio that would allow mutually advantageous trade to take
place would be:
A 1 aircraft = 25 carpets.
B 1 aircraft = 20 carpets.
C 1 carpet = 4 aircrafts.
D 1 aircraft = 22 carpets.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd83e1ba6-687a-4e9e-9f6a-3195074803b0%2F19cb2eb9-d034-47fb-a44f-7e97d85b9d5d%2Fnowh6eb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.
The table below shows output rates per day in the two countries if all resources are fully and efficiently
employed. Use this information to answer the question.
Carpets
Fighter aircraft
Afghanistan
100
US
500
25
An appropriate international exchange ratio that would allow mutually advantageous trade to take
place would be:
A 1 aircraft = 25 carpets.
B 1 aircraft = 20 carpets.
C 1 carpet = 4 aircrafts.
D 1 aircraft = 22 carpets.
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