The following data outline production choices (A or b. in two nations, Gamma and Sigma. Each nation has a workforce of 10. Output per worker in Sigma A. Output per worker in Gamma Tea Pots 40 Tea Pots 120 120 120 Refer to the data in the table above to answer the following question. What are the limits of the terms of trade between Gamma and Sigma? 1 unit of tea=1 pot to 3 units of tea= 1 pot 1 unit of tea = 3 pots to 1 unit of tea = 6 pots I unit of tea = 1 pot to 1 unit of tea = 3 pots 6 units of tea =1 pot to I unit of tea = 1 pot 6 units of tea =1 pot to 6 pots = 1 unit of tea %3D !3!

The following data outline production choices (A or b. in two nations, Gamma and Sigma. Each nation has a workforce of 10. Output per worker in Sigma A. Output per worker in Gamma Tea Pots 40 Tea Pots 120 120 120 Refer to the data in the table above to answer the following question. What are the limits of the terms of trade between Gamma and Sigma? 1 unit of tea=1 pot to 3 units of tea= 1 pot 1 unit of tea = 3 pots to 1 unit of tea = 6 pots I unit of tea = 1 pot to 1 unit of tea = 3 pots 6 units of tea =1 pot to I unit of tea = 1 pot 6 units of tea =1 pot to 6 pots = 1 unit of tea %3D !3!

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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