The figure below shows the PPFs for two countries: Adventureland and Zombieland.
ID: 1094330 • Letter: T
Question
The figure below shows the PPFs for two countries: Adventureland and Zombieland. According to the figure, if the terms of trade happened to be such that 1 radio was worth 5 coolers then trade would not occur because:
A- Adventureland will refuse to trade
B- Zombieland will refuse to trade
C- Both countries will refuse to trade
The figure below shows the PPFs for two countries: Adventureland and Zombieland. According to the figure, if the terms of trade happened to be such that 1 radio was worth 5 coolers then trade would not occur because: A- Adventureland will refuse to trade B- Zombieland will refuse to trade C- Both countries will refuse to trade D- In this case both countries can consume at a point outside their PPFs without trade
Explanation / Answer
B- Zombieland will refuse to trade