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:

White-collar Deviance

Illegal or unethical acts committed by individuals in professional occupations during the course of their employment.

Unwittingly

Unwittingly means doing something without being aware of all the facts or without intending to cause a particular result.

Ignorance

The lack of knowledge, understanding, or awareness about something.

Profit Maximization

A company's goal to achieve the highest possible financial gain from its operations, within legal and ethical boundaries.