Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)

-Refer to Figure 3-5.Suppose Country B is willing to trade 40 bushels of corn to Country A for each car that Country A produces and sends to Country B.Which of the following combinations of cars and corn could Country A then consume,assuming Country A specializes in car production?
A)2 cars and 240 bushels of corn
B)3 cars and 220 bushels of corn
C)4 cars and 200 bushels of corn
D)5 cars and 140 bushels of corn

Question

Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)
 
-Refer to Figure 3-5.Suppose Country B is willing to trade 40 bushels of corn to Country A for each car that Country A produces and sends to Country B.Which of the following combinations of cars and corn could Country A then consume,assuming Country A specializes in car production?
A)2 cars and 240 bushels of corn 
B)3 cars and 220 bushels of corn 
C)4 cars and 200 bushels of corn 
D)5 cars and 140 bushels of corn

Quizplus · Accepted Answer

Country A can consume 2 cars and 240 bushels of corn because it can trade 2 cars for 80 bushels of corn (40 bushels per car) and then use those 80 bushels of corn to buy another 2 cars (40 bushels per car).

Figure 3-5 the Graph Below Represents the Various Combinations of Cars