If Tom and Abby specialize and trade 15 balls for 1 racket, what are the
gains from trade?
Table 1 shows the PPF of an island community. Choose the best statement.
A. This community has enough resources to produce 2 pounds of fish and
36 pounds of berries.
B. This community cannot produce 2 pounds of fish and 36 pounds of
berries because this combination is inefficient.
C. This community will waste resources if it produces 2 pounds of fish and
22 pounds of berries.
D. This community can produce 2 pounds of fish and 30 pounds of berries
but this combination is inefficient.
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