Jaydin Roman

Social Studies

23 November, 17:40

Assume that Country A exports one bushel of wheat in exchange for 2.5 bushels of corn from Country B. If the terms of trade are beneficial to both countries, which of the following must be true? (A) Country A has an absolute advantage in the production of wheat.

(B) The cost of producing a bushel of wheat in Country A is less than 2.5 bushels of corn.

(C) The cost of producing a bushel of wheat in Country A is greater than 2.5 bushels of corn.

(D) Country A is producing inside its current production possibilities curve.

(E) Country A needs to use more resources to produce wheat than to produce corn.