Consider the case of two countries, Afghanistan and the US, both producing carpets and fighter aircraft.

The table below shows output rates per day in the two countries if all resources are fully and efficiently

employed. Use this information to answer the question.

Carpets Fighter aircraft

Afghanistan

100

4

US

500

25

An appropriate international exchange ratio that would allow mutually advantageous trade to take

place would be:

A 1 aircraft = 25 carpets.

B 1 aircraft = 20 carpets.

C 1 carpet = 4 aircrafts.

D 1 aircraft = 22 carpets.