Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 computer will exchange for
A. More than 3 tons of soybeans but less than 5.
B. Less than 1/5 of a ton of soybeans.
C. Zero soybeans.
D. More than 1/5 of a ton of soybeans but less than 1/3.
Answer: D
You might also like to view...
The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth
a. True b. False
Prior to 1980, thrift institutions in the United States were allowed to offer checking accounts
a. True b. False Indicate whether the statement is true or false
Which of the following does not affect the wages a worker earns?
a. natural ability b. effort c. chance d. All of the above affect the wages a worker earns.
As discussed in the Case in Point on the size of the fiscal multiplier, a study conducted by John Taylor on the effect of fiscal policy since the year 2000 suggests that
A) the multiplier effect of fiscal policy is much less than that for monetary policy. B) temporary fiscal policy financed through government borrowing implies a multiplier value between 0.8 and 1.5. C) fiscal policy has little effect on the economy and that the multiplier value is effectively zero. D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.