With reference to the table below, we can say that
| Country—A | Country—B | |
|---|---|---|
| Wheat (bushels/man-day) | 6 | 1 |
| Cloth (yards/man-day) | 2 | 12 |
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2 marks, −1International EconomicsTheories of international tradeSpecialisation and the gains from tradeModerateabout 2 min
JNU SIS 2018 Question 48: Theories of international trade
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With reference to the table below, we can say that | Country—A | Country—B | Wheat (bushels/man-day) | 6 | 1 | Cloth (yards/man-day) | 2 | 12 | (A) country B will be willing to exchange 6 bushels of wheat for 6 yards for cloth, but not country A (B) country B will be willing to exchange 6 bushels of wheat for 12 yards of cloth, but not country A (C) both country A and country B will be willing to exchange 6 bushels of wheat for 6 yards of cloth (D) None of the above
Theories of international trade has come up 151 times in 6 exams since 2006.
What this question tests
This question is on Specialisation and the gains from trade, part of Theories of international trade in International Economics.
How specialisation raises consumption possibilities, including complete and incomplete specialisation.
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