The Table Below Shows Units of Wheat and Cloth Produced

question 28

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 34.1 Refer to Table 34.1.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

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Definitions:

Research Process

A systematic procedure that involves the collection, analysis, and interpretation of data to answer a question or solve a problem.

Independent Variable

The variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Comprehension

The ability to understand or grasp the meaning of something.

Test Scores

Quantitative measures obtained from educational assessments or exams; also not a key term in a statistical context alone, thus NO.