In the Three-Country World in Question #19, Which One of the Following

question 26

Multiple Choice

In the three-country world in Question #19, which one of the following statements is TRUE?

• A) Posttrade prices (terms of trade) of 1 wheat:2.5 clothing (or 1 clothing:0.4 wheat)Would give all the gains from trade to the United States.
• B) Posttrade prices (terms of trade) of 1 wheat:3 clothing (or 1 clothing:? wheat) are Possible.
• C) At posttrade prices (terms of trade) of 1 wheat:1.6 clothing (or 1 clothing:0.625 Wheat), England would export wheat and Spain and the United States would export clothing.
• D) At posttrade prices (terms of trade) of 1 wheat:2.25 clothing (or 1 clothing:0.44 Wheat), Spain would export clothing and import wheat.

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Definitions:

Great Elector

A title held by Frederick William, who was the Elector of Brandenburg and Duke of Prussia in the 17th century, instrumental in consolidating his territories and strengthening the state.

Nobles

Nobles refer to individuals of high social rank, typically holding titles in the aristocracy, and often possessing unique privileges, lands, and influence in their societies.

Standing Army

A permanent, professional army maintained in times of peace as well as war, distinguishing it from temporary forces raised during emergencies.

Privilege

A special right, advantage, or immunity granted or available only to a particular person or group of people.