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
Correct Answer:
Verified
Correct Answer:
Verified
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