Multiple Choice
Given the following Ricardo-type table showing the amount of labor input needed to get one unit of output in each industry in each country:
A) Terms of trade of 1 wheat:1.25 chairs is not a feasible equilibrium terms of trade.
B) Terms of trade of 1 wheat:1.5 chairs would give all the gains from trade to India.
C) Malaysia has an absolute advantage in both goods and a comparative advantage in Wheat.
D) India has an absolute advantage in both goods and a comparative advantage in wheat.
Correct Answer:

Verified
Correct Answer:
Verified
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