If the opportunity cost is 2X = 1Y for country A and 1X = 3Y for country B, then a possible terms of trade is:

A) 1X = 1/3Y.
B) 1X = 1/4Y.
C) 1X = 1/5Y.
D) 1/2X = 1Y.


Ans: D) 1/2X = 1Y.

Economics

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