Multiple Choice
Home has a comparative advantage in wheat, and Foreign has a comparative advantage in cloth. Once trade occurs, Home produces 1,500 bushels of wheat, and Foreign produces 1,000 yards of cloth. The following table shows the amount of wheat that Home is willing to trade to acquire more cloth. 
If the international price of cloth is 1.5 bushels of wheat per yard, how many bushels of wheat will Home export to Foreign?
A) 1,050 bushels
B) 800 bushels
C) 700 bushels
D) 550 bushels
Correct Answer:
Verified
Correct Answer:
Verified
Q122: Trade between two nations is NOT possible
Q123: (Figure: Upperia's Production and Consumption) The graph
Q124: (Figure: Indifference Curves) What is the opportunity
Q125: When a country requires <i>fewer</i> resources to
Q126: To complete the model of international trade
Q128: A worker's "real" wage is related to:<br>A)
Q129: Ricardo's theory showed that if nations are
Q130: In the Ricardian model, wages are equal
Q131: In the United States, one worker can
Q132: (Figure: Home Equilibrium with No Trade) Under