Figure 3.1  China – US Trade Possibilities Considering Figure 3.1, what are the terms of trade represented?

A. The terms of trade are 1½ textiles per aircraft.
B. The terms of trade are 1½ aircraft per textile.
C. The terms of trade are 1 textile per aircraft.
D. The terms of trade are 2/3 textile per aircraft.

ANSWER:

A. The terms of trade are 1½ textiles per aircraft.