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If Samoa Could Produce Either 3 Coconuts or 12 Pineapples

Question 98

Multiple Choice

If Samoa could produce either 3 coconuts or 12 pineapples per worker,while Guam could produce either 5 coconuts or 20 pineapples per worker,what can we conclude in this situation?


A) Both Samoa and Guam will be better off if Samoa produces both coconuts and pineapples.
B) Mutually beneficial trade cannot occur.
C) If trade occurs, both countries will be able to consume beyond their original production possibilities frontiers.
D) Guam will be better off if it exports coconuts and imports pineapples.

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