Suppose That the Cost of Producing 1 Unit of Wine

Question 103
Multiple Choice

Suppose that the cost of producing 1 unit of wine in Happy Island is 2 units of rice;in Joy Island 1 wine costs 4 rice.What might be possible terms of trade between the two countries? A)1 rice = 3/8 wine. B)1 rice = 3 wine. C)1 rice = 6 wine. D)1 wine = 1 rice.