The Table Below Shows Units of Wheat and Cloth Produced

question 21

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1
- Refer to Table 20.1.Assume that the U.S.has only two workers and the terms of trade are 2 bushels of wheat per rack of clothing.What would be the gains from trade for the U.S.if it is producing according to its comparative advantage?

• A)2 racks of clothing
• B)2.5 racks of clothing
• C)1.5 racks of clothing
• D)3 racks of clothing
• E)1 rack of clothing

Recognize the significance of proved reserves in assessing the availability of natural resources.

Comprehend the dynamics between resource scarcity, exploration, and innovation.

Identify the factors influencing the prices of natural resources and their long-term trends.

Grasp the principles of market responses to resource scarcity, including exploration, conservation, and substitution.