Scenario: Oil and Copper Suppose in one year Chile can produce up to 8 million pounds of copper or 2 million barrels of oil. They can also produce any combination of copper and oil within those bounds at a constant rate of substitution. Suppose also that Norway can produce up to 1 million pounds of copper or 10 million barrels of oil, and likewise any combination of oil and copper with a constant rate of substitution. 1. If Norway and Chile did not trade with other nations for oil or copper, but each consumed only the oil and copper they produced, how many barrels of oil would we expect a pound of copper to trade for in each country? a) 1/2 barrels of oil in Chile and 5 barrels of oil in Norway. b) 5 barrels of oil in Chile and 1/2 barrels of oil in Norway. c) 1/4 barrels of oil in Chile and 10 barrels of oil in Norway. d) 10 barrels of oil in Chile and 1/4 barrels of oil in Norway. Scenario: Oil and Copper Suppose in one year Chile can produce up to 8 million pounds of copper or 2 million barrels of oil. They can also produce any combination of copper and oil within those bounds at a constant rate of substitution. Suppose also that Norway can produce up to 1 million pounds of copper or 10 million barrels of oil, and likewise any combination of oil and copper with a constant rate of substitution. 1. If Norway and Chile did not trade with other nations for oil or copper, but each consumed only the oil and copper they produced, how many barrels of oil would we expect a pound of copper to trade for in each country? a) 1/2 barrels of oil in Chile and 5 barrels of oil in Norway. b) 5 barrels of oil in Chile and 1/2 barrels of oil in Norway. c) 1/4 barrels of oil in Chile and 10 barrels of oil in Norway. d) 10 barrels of oil in Chile and 1/4 barrels of oil in Norway