Use the Following to Answer Questions

question 89

Multiple Choice

Use the following to answer questions:
-(Table: Wheat and Aluminium) Use Table: Wheat and Aluminium.The Canada and Germany can produce both wheat and aluminium.The table shows,in tonnage,the maximum annual output combinations of wheat and aluminium that can be produced.Which choice represents a possible trade based on specialization and comparative advantage?

• A) Germany would trade 2 tonnes of wheat to the United States for 1 tonne of aluminium.
• B) Germany would trade 2 tonnes of aluminium to the United States 0.5 tonne of wheat.
• C) The United States would trade 1 tonne of wheat to Germany for 1 tonne of aluminium.
• D) The United States would trade 1 tonne of wheat to Germany for 1.5 tonnes of aluminium.

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Definitions:

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