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In the Three-Country World in Question #19, Which One of the Following

Question 26

Multiple Choice

In the three-country world in Question #19, which one of the following statements is TRUE?


A) Posttrade prices (terms of trade) of 1 wheat:2.5 clothing (or 1 clothing:0.4 wheat) Would give all the gains from trade to the United States.
B) Posttrade prices (terms of trade) of 1 wheat:3 clothing (or 1 clothing:? wheat) are Possible.
C) At posttrade prices (terms of trade) of 1 wheat:1.6 clothing (or 1 clothing:0.625 Wheat) , England would export wheat and Spain and the United States would export clothing.
D) At posttrade prices (terms of trade) of 1 wheat:2.25 clothing (or 1 clothing:0.44 Wheat) , Spain would export clothing and import wheat.

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