If the Opportunity Cost of Corn to Wheat Is 3:1

question 64

True/False

If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.

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Definitions:

Fourth Of July

A federal holiday in the United States commemorating the Declaration of Independence, celebrated on July 4th.

Capitalization

The process of accounting for a cost as an asset, rather than an expense, to be amortized or depreciated over time.

Mount Hood

A potentially active stratovolcano in the Cascade Volcanic Arc of northern Oregon.

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The financial term referring to the total market value of a company's outstanding shares or the process of funding a project or venture.