The table above shows the daily production possibilities for China and Malaysia in producing trucks and coffee using the same amount of resources. Based on the data provided, which of the following terms of trade are mutually beneficial for the two countries?A. 1 ton of coffee for 3 trucksB. 1 ton of coffee for 4 trucksC. 1 ton of coffee for 5 trucksD. 1 truck for 1 ton of coffeeE. 1 truck for 5 ton of coffee The table illustrates the production quantities of trucks and coffee in China and Malaysia.| Country | Trucks | Coffee (in tons) ||----------|--------|------------------|| China | 250 | 50 || Malaysia | 300 | 100 |**Explanation:**- **China** is able to produce 250 trucks and 50 tons of coffee.- **Malaysia** can produce 300 trucks and 100 tons of coffee.This data can be used to compare the production capabilities of each country in terms of these two goods.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table above shows the daily production possibilities for China and Malaysia in producing trucks and coffee using the same amount of resources. Based on the data provided, which of the following terms of trade are mutually beneficial for the two countries?

A. 1 ton of coffee for 3 trucks

B. 1 ton of coffee for 4 trucks

C. 1 ton of coffee for 5 trucks

D. 1 truck for 1 ton of coffee

E. 1 truck for 5 ton of coffee

The table illustrates the production quantities of trucks and coffee in China and Malaysia.

| Country | Trucks | Coffee (in tons) |
|----------|--------|------------------|
| China | 250 | 50 |
| Malaysia | 300 | 100 |

**Explanation:**

- **China** is able to produce 250 trucks and 50 tons of coffee.
- **Malaysia** can produce 300 trucks and 100 tons of coffee.

This data can be used to compare the production capabilities of each country in terms of these two goods.

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