Assume labour is the only factor of production in countries Anarres and Urras. In Anarres, production of 1 heat pump requires 3 hours of labour input and 1 solar panel requires 2 hours of labour input. In Urras, production of 1 heat pump requires 6 hours of labour input and 1 solar panel requires 3 hours of labour input. Determine which ONE of the following is a valid terms of trade between the two countries at which they will both benefit from trade: A 2.25 solar panels for each heat pump. B 2 solar panels for each heat pump. C 1.75 solar panels for each heat pump. D 1.5 solar panels for each heat pump.
