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Suppose That the Labor Requirements Per Unit of Output in Each

Question 26

Multiple Choice

Suppose that the labor requirements per unit of output in each of the two industries in Each of three countries are as follows:
 Wheat  Cloth Spain  2 days  3 days  France  2 days  2 days  United States  1 day  3 days \begin{array} { l l l } & \underline{\text { Wheat }} & \underline{\text { Cloth} } \\\\\text { Spain } & \text { 2 days } & \text { 3 days } \\\text { France } & \text { 2 days } & \text { 2 days } \\\text { United States } & \text { 1 day } & \text { 3 days }\end{array}
In this situation, with an international terms of trade of 1 cloth:2 wheat (or 1 wheat:½ cloth) , __________ would export cloth and import wheat; if the terms of trade were, instead, 1 wheat:¾ cloth (or 1 cloth:1 Suppose that the labor requirements per unit of output in each of the two industries in Each of three countries are as follows:  \begin{array} { l l l }  & \underline{\text { Wheat }} & \underline{\text { Cloth} } \\\\ \text { Spain } & \text { 2 days } & \text { 3 days } \\ \text { France } & \text { 2 days } & \text { 2 days } \\ \text { United States } & \text { 1 day } & \text { 3 days } \end{array}  In this situation, with an international terms of trade of 1 cloth:2 wheat (or 1 wheat:½ cloth) , __________ would export cloth and import wheat; if the terms of trade were, instead, 1 wheat:¾ cloth (or 1 cloth:1  wheat) , __________ would export cloth and import wheat. A)  France and the United States; Spain B)  Spain and France; France C)  France and the United States; Spain and the United States D)  Spain and France; Spain and the United States wheat) , __________ would export cloth and import wheat.


A) France and the United States; Spain
B) Spain and France; France
C) France and the United States; Spain and the United States
D) Spain and France; Spain and the United States

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