Country A and Country B are potential trading partners that can produce boats and umbrellas, as illustrated in the PPCs below. Boats B 11+ 10- C D 9+ 8- 7+ 6+ 5+ 4+ 3+ 2+ 1+ Choose 1 answers: PPC for Country A and County B Which of the following exchange prices for boats would result in gains from trade for these two countries? 1 2 1 3 3 تن | ان A 1 - umbrella per boat 4 Umbrellas umbrella per boat umbrella per boat B 7 8 9 10 11 5 One umbrella per boat 2.5 umbrellas per boat
Country A and Country B are potential trading partners that can produce boats and umbrellas, as illustrated in the PPCs below. Boats B 11+ 10- C D 9+ 8- 7+ 6+ 5+ 4+ 3+ 2+ 1+ Choose 1 answers: PPC for Country A and County B Which of the following exchange prices for boats would result in gains from trade for these two countries? 1 2 1 3 3 تن | ان A 1 - umbrella per boat 4 Umbrellas umbrella per boat umbrella per boat B 7 8 9 10 11 5 One umbrella per boat 2.5 umbrellas per boat
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
### PPC for Country A and Country B
The graph shows production possibility curves for two countries, A and B:
- The vertical axis represents the number of Boats.
- The horizontal axis represents the number of Umbrellas.
- The green line (labeled A) is Country A's PPC, starting at 10 boats and extending to 5 umbrellas.
- The red line (labeled B) is Country B's PPC, starting at 6 boats and extending to 9 umbrellas.
### Question:
Which of the following exchange prices for boats would result in gains from trade for these two countries?
**Choose 1 answer:**
A) \( \frac{1}{4} \) umbrella per boat
B) \( \frac{1}{3} \) umbrella per boat
C) \( \frac{3}{5} \) umbrella per boat
D) One umbrella per boat
E) 2.5 umbrellas per boat
---
The goal is to determine the exchange rate at which both countries can gain from trading boats and umbrellas.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4b3d18c-ff5d-4391-b364-c5eca9fb3f47%2F64bf624c-5480-4bcf-8cdb-f95637782d00%2Fh0z63kq_processed.png&w=3840&q=75)
Transcribed Image Text:**Text for Educational Website:**
Country A and Country B are potential trading partners that can produce boats and umbrellas, as illustrated in the PPCs (Production Possibility Curves) below.

### PPC for Country A and Country B
The graph shows production possibility curves for two countries, A and B:
- The vertical axis represents the number of Boats.
- The horizontal axis represents the number of Umbrellas.
- The green line (labeled A) is Country A's PPC, starting at 10 boats and extending to 5 umbrellas.
- The red line (labeled B) is Country B's PPC, starting at 6 boats and extending to 9 umbrellas.
### Question:
Which of the following exchange prices for boats would result in gains from trade for these two countries?
**Choose 1 answer:**
A) \( \frac{1}{4} \) umbrella per boat
B) \( \frac{1}{3} \) umbrella per boat
C) \( \frac{3}{5} \) umbrella per boat
D) One umbrella per boat
E) 2.5 umbrellas per boat
---
The goal is to determine the exchange rate at which both countries can gain from trading boats and umbrellas.
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