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Based on the Following Information

Question 89

Multiple Choice

based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth.
-Trade between India and the U.S. would definitely occur where the price of machines in terms of cloth (terms of trade) is:


A) 1M = 2C.
B) 1M = 4C.
C) 1M = 6C.
D) 1M = 7C.
E) 1M = 8C

Correct Answer:

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