Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country A specializes in bananas, and Country B specializes in tomatoes. The limits to the terms of trade that Country A would find acceptable are Country A will give no:

A. less than 1 tomato for every 5 bananas.
B. less than 5 bananas for each tomato.
C. more than 5 bananas for each tomato.
D. more than 1 tomato for every 5 bananas.


Answer: C

Economics

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The job protection argument states that trade restrictions are needed to prevent the loss of jobS in domestic industries.

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Economics