Solved

The Nation of Wheatland Forbids International Trade

Question 13

Multiple Choice

The nation of Wheatland forbids international trade. In Wheatland, you can buy 1 pound of corn for 3 pounds of fish. In other countries, you can buy 1 pound of corn for 2 pounds of fish. These facts indicate that


A) Wheatland has a comparative advantage, relative to other countries, in producing corn.
B) other countries have a comparative advantage, relative to Wheatland, in producing fish.
C) the price of fish in Wheatland exceeds the world price of fish.
D) if Wheatland were to allow trade, it would import corn.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions