Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons. Gamma production possibilities: A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma production possibilities: A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 What are the limits of the terms of trade between Gamma and Sigma? 1 tea=2 pots to 1 tea=6 pots 1 tea=3 pots to 1 tea=6 pots 1 tea=2 pots to 1 tea=3.5 pots 1 tea=1 pot to 1 tea=3 pots
Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons. Gamma production possibilities: A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma production possibilities: A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 What are the limits of the terms of trade between Gamma and Sigma? 1 tea=2 pots to 1 tea=6 pots 1 tea=3 pots to 1 tea=6 pots 1 tea=2 pots to 1 tea=3.5 pots 1 tea=1 pot to 1 tea=3 pots
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.
Gamma production possibilities:
A | B | C | D | E | |
Tea | 120 | 90 | 60 | 30 | 0 |
Pots | 0 | 30 | 60 | 90 | 120 |
Sigma production possibilities:
A | B | C | D | E | |
Tea | 40 | 30 | 20 | 10 | 0 |
Pots | 0 | 30 | 60 | 90 | 120 |
What are the limits of the terms of trade between Gamma and Sigma?
1 tea=2 pots to 1 tea=6 pots
1 tea=3 pots to 1 tea=6 pots
1 tea=2 pots to 1 tea=3.5 pots
1 tea=1 pot to 1 tea=3 pots
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