The Table Below Shows Units of Wheat and Cloth Produced

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 can produce and trade 2 units of wheat for a unit of clothing. What would be the gains from trade for the U.S. if it is producing according to its comparative advantage?

A) 2 units of clothing
B) 2.5 units of clothing
C) 1.5 units of clothing
D) 3 units of clothing
E) 1 units of clothing

Correct Answer:

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