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-Refer to Table 3-6

Question 97

Multiple Choice

-Refer to Table 3-6. Denmark and Italy trade according to the principle of comparative advantage. If the international price of bread is 2.5 units of cheese for 1 unit of bread, what is the gain from trade to Italy per unit of bread traded? A) 0.5 units of cheese B) 1.5 unit of cheese C) 2.0 units of cheese D) 2.5 units of cheese
-Refer to Table 3-6. Denmark and Italy trade according to the principle of comparative advantage. If the international price of bread is 2.5 units of cheese for 1 unit of bread, what is the gain from trade to Italy per unit of bread traded?


A) 0.5 units of cheese
B) 1.5 unit of cheese
C) 2.0 units of cheese
D) 2.5 units of cheese

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