SCENARIO: HOME'S WILLINGNESS TO TRADE WHEAT FOR CLOTH

question 133

Multiple Choice

SCENARIO: HOME'S WILLINGNESS TO TRADE WHEAT FOR CLOTH
Home has a comparative advantage in wheat, and Foreign has a
Comparative advantage in cloth.Once trade occurs, Home produces
1,500 bushels of wheat, and Foreign produces 1,000 yards of cloth.The
Following table shows the amount of wheat that Home is willing to trade
To acquire more cloth.

Reference: Ref 2­13
(Scenario: Home's Willingness to Trade Wheat for Cloth) If the
International price of cloth is 1.5 bushels of wheat per yard, how many
Bushels of wheat will Home export to Foreign?

• A)1,150 bushels
• B)1,100 bushels
• C)850 bushels
• D)650 bushels

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Definitions:

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Sensory nerve endings around hair follicles that allow the detection of light touch or fine movements over the skin.

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Sensory functions managed by the inner ear, where hearing involves the detection of sound waves and balance is maintained through the vestibular system.

Touch

The sense through which we perceive pressure, texture, and temperature, primarily using our skin.

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A cellular membrane protein that moves sodium out of and potassium into a cell against their concentration gradients, vital for maintaining cellular homeostasis.