Multiple Choice
The cost of producing a car in Germany is 2,000 bushels of wheat,and the cost of producing a car in Canada is 1,200 bushels of wheat.The two countries can both benefit if the terms of trade are
A) greater than 2,000 of wheat per car
B) less than 1,200 bushels of wheat per car
C) between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces wheat
D) between 1,200 bushels and 2,000 bushels of wheat per car,and Germany produces cars
E) between 1,200 bushels and 2,000 bushels of wheat per car,and Canada produces wheat
Correct Answer:

Verified
Correct Answer:
Verified
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