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Use the data table to answer the question that follows.


Production Possibilities for One Year
U.S.A : 4 million tons of cheese
Italy : 1 million tons of cheese
-------------------------------------
U.S.A: 2 million tons of tomatoes
Italy: 1 million tons of tomatoes

Which statement is supported by the data table?

A. The United States can consume beyond its PPC by specializing in cheese and trading it for tomatoes from Italy.
B. The United States can consume beyond its PPC by specializing in tomatoes and trading them for cheese from Italy.
C. Neither the United States nor Italy can consume beyond their PPCs through specialization and trade in this scenario.
D. Both the United States and Italy can consume beyond their PPCs by both specializing in cheese and trading with other countries for tomatoes.

Respuesta :

annyksl

Within this scenario, the United States can consume beyond its PPC by specializing in cheese and exchanging it for tomatoes from Italy.

Why is this possible?

  • Italy's cheese production is lower than the US's production.
  • Italy cannot consume cheese other than PPC unless some country supplies these products.
  • The US can consume tomatoes in addition to PPC by making an exchange agreement with Italy.

As the production of cheese in the USA is much higher than the production in Italy, we can consider that the USA can supply this product to other countries without compromising its consumption. However, the production of tomatoes in the USA is the same as the production in Italy, but taking into account that the USA is a more populous country than Italy, tomato consumption can be compromised in the country.

For this reason, tomato consumption in the US may exceed the PPC of tomatoes if the country obtains this product from another country. This can be done through barter, where the US supplies cheese to Italy and Italy supplies tomatoes to the US.

Learn more about PPC:

https://brainly.com/question/14293257

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