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. 
Suppose that Home's trade price rose from 0.5 bushel of wheat per yard of cloth in 2009 to a bushel of wheat per yard of cloth in 2010. Which of the following statements is true?
A) Home's situation had greatly improved in 2010.
B) Home's situation had deteriorated in 2010.
C) Home's situation was the same as it was in 2009.
D) Home's situation had slightly improved in 2010.
Correct Answer:
Verified
Correct Answer:
Verified
Q190: In an autarkic situation, demonstrate that a
Q191: (Figure: Indifference Curves) Which point on the
Q192: For China and India, the result of
Q193: Poland requires 4 hours of labor to
Q194: In the United States, one worker can
Q196: Several economists have hypothesized that the terms
Q197: Chile and Argentina each produce jellybeans and
Q198: (Figure: Indifference Curves) Of the following points
Q199: A nation will export the product in
Q200: Suppose that there is an improvement in