Solved

The Opportunity Cost of Producing One Car in Germany Is

Question 42

Multiple Choice

The opportunity cost of producing one car in Germany is 2, 000 bushels of wheat, and the opportunity cost of producing one car in Canada is 1, 200 bushels of wheat.The two countries can realize mutual gains from trade if they agree on terms of trade that are


A) greater than 2, 000 bushels of wheat per car
B) less than 1, 200 bushels of wheat per car
C) greater than 1, 200 bushels of wheat per car and less than 2, 000 bushels of wheat per car, and Germany produces wheat
D) greater than 1, 200 bushels of wheat per car and less than 2, 000 bushels of wheat per car, and Germany produces cars
E) greater than 1, 200 bushels of wheat per car and less than 2, 000 bushels of wheat per car, and each country produces both goods

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents