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 yards of cloth will Foreign export to Home?
A) 500 yards
B) 600 yards
C) 700 yards
D) 1,150 yards
Correct Answer:
Verified
Correct Answer:
Verified
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