Home Has a Comparative Advantage in Wheat, and Foreign Has

question 195

Multiple Choice

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. Suppose that Home's trade price rose from 0.5 bushel of wheat per yard of cloth in 2009 to a bushel of wheat per yard of cloth in 2010. Which of the following statements is true?

• A) Home's situation had greatly improved in 2010.
• B) Home's situation had deteriorated in 2010.
• C) Home's situation was the same as it was in 2009.
• D) Home's situation had slightly improved in 2010.

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Definitions:

Fractured Dens

A break in the dens, which is a bony projection off the second cervical vertebra, potentially affecting spinal stability and nerve function.

Spina Bifida

A birth defect where there is an incomplete closing of the backbone and membranes around the spinal cord.

Vertebral Laminae

The vertebral laminae are flattened plates of bone originating from the pedicles of the vertebral arch, forming the posterior part of the vertebral foramen.

Coccyx

The coccyx, commonly known as the tailbone, is the small, triangular bone at the bottom of the spine, consisting of several fused vertebrae.