Multiple Choice
Home has a comparative advantage in wheat, and Foreign has a comparative advantage in cloth. Once trade occurs, Home produces 1,000 bushels of wheat, and Foreign produces 1,000 yards of cloth. The following table shows the amount of wheat that Home is willing to supply and Foreign is willing to buy at various international prices. 
In equilibrium, how many bushels of wheat will Foreign import?
A) 900 bushels
B) 700 bushels
C) 500 bushels
D) 300 bushels
Correct Answer:
Verified
Correct Answer:
Verified
Q154: Chile and Argentina each produce jellybeans and
Q155: To explain why some nations purchase products
Q156: Where will a nation that gains from
Q157: Suppose that the introduction of computers increases
Q158: David Ricardo's model explains trade based on:<br>A)
Q160: If a home country is exporting corn
Q161: The primary explanation of trade among nations
Q162: (Table: Output in the United States and
Q163: Poland requires 4 hours of labor to
Q164: Assume a hypothetical economy where cloth and