The opportunity cost of producing one car in Germany is 2,000 bushels of wheat, and the opportunity cost of producing one car in Canada is 1,200 bushels of wheat. The two countries can realize mutual gains from trade if they agree on terms of trade that are
a. greater than 2,000 bushels of wheat per car
b. less than 1,200 bushels of wheat per car
c. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces wheat
d. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces cars
e. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and each country produces both goods
C
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A. Sparseness of population B. War-induced poverty C. Coastal shipping. D. All of the above are correct.
Western agriculture in the nineteenth century can be characterized by
(a) a rising labor to output ratio. (b) a rising capital to output ratio. (c) the use of marginal land to increase output. (d) a shift to more efficient crops.
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Indicate whether the statement is true or false
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