Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for
A) More than 3 computers but less than 5.
B) More than 1/5 of a computer but less than 1/3.
C) Less than 3 computers.
D) Zero computers.

Question

Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for
A) More than 3 computers but less than 5. 
B) More than 1/5 of a computer but less than 1/3. 
C) Less than 3 computers. 
D) Zero computers.

Quizplus · Accepted Answer

The Answer of  Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for
A) More than 3 computers but less than 5. 
B) More than 1/5 of a computer but less than 1/3. 
C) Less than 3 computers. 
D) Zero computers.

Based on the Information in Table 35