Question
An appropriate international exchange ratio that would allow mutually advantageous trade to take place would be:
Question 5 options:
1 aircraft = 22 carpets
1 aircraft = 25 carpets.
1 aircraft = 20 carpets.
1 carpet = 4 aircraft.
Question 5 options:
1 aircraft = 22 carpets
1 aircraft = 25 carpets.
1 aircraft = 20 carpets.
1 carpet = 4 aircraft.
Answers
GPT-4o mini
To determine the appropriate international exchange ratio that would allow for mutually advantageous trade, we should consider the opportunity cost of producing each good in each country involved in the trade. However, since we don't have the production costs or opportunity costs explicitly given for aircraft and carpets, we need to analyze the given options.
In order to facilitate trade, the exchange ratio must fall between the opportunity costs of each party involved, which is not provided in your question. Instead, let's see if any of these ratios allow for a beneficial trade scenario.
**Given options:**
1. 1 aircraft = 22 carpets
2. 1 aircraft = 25 carpets
3. 1 aircraft = 20 carpets
4. 1 carpet = 4 aircraft
From these ratios, if we were to analyze only the ratios themselves:
- If 1 aircraft = 20 carpets, then this is the baseline exchange.
- 1 aircraft = 22 carpets and 1 aircraft = 25 carpets would suggest that if a country can produce carpets more efficiently, they would prefer to trade somewhere in between these values.
- 1 carpet = 4 aircraft translates to 1 aircraft = 0.25 carpets, which is significantly different than the other values.
In seeking mutual gain:
- Let's assume the country would like to trade and would sell their aircraft at a rate better than the lower ends of these ratios.
In this case, **1 aircraft = 20 carpets** would likely be the most sensible answer, allowing both parties involved in the exchange to benefit from the trade without creating an imbalance in value.
Thus, the appropriate international exchange ratio that would allow mutually advantageous trade to take place is:
**1 aircraft = 20 carpets.**
In order to facilitate trade, the exchange ratio must fall between the opportunity costs of each party involved, which is not provided in your question. Instead, let's see if any of these ratios allow for a beneficial trade scenario.
**Given options:**
1. 1 aircraft = 22 carpets
2. 1 aircraft = 25 carpets
3. 1 aircraft = 20 carpets
4. 1 carpet = 4 aircraft
From these ratios, if we were to analyze only the ratios themselves:
- If 1 aircraft = 20 carpets, then this is the baseline exchange.
- 1 aircraft = 22 carpets and 1 aircraft = 25 carpets would suggest that if a country can produce carpets more efficiently, they would prefer to trade somewhere in between these values.
- 1 carpet = 4 aircraft translates to 1 aircraft = 0.25 carpets, which is significantly different than the other values.
In seeking mutual gain:
- Let's assume the country would like to trade and would sell their aircraft at a rate better than the lower ends of these ratios.
In this case, **1 aircraft = 20 carpets** would likely be the most sensible answer, allowing both parties involved in the exchange to benefit from the trade without creating an imbalance in value.
Thus, the appropriate international exchange ratio that would allow mutually advantageous trade to take place is:
**1 aircraft = 20 carpets.**