Table 1 shows the units of output a worker can produce per month in Australia and Korea. ?
?
Refer to table 1. Prices of electronics can be stated in terms of units of food. What is the range of prices of electronics for which both countries could gain from trade? The price must be greater than:
A) 1/5 of a unit of food but less than 1/4 of a unit of food.
B) 4 units of food but less than 5 units of food.
C) 1/4 of a unit of food but less than 1/2 of a unit of food.
D) 2 units of food but less than 4 units of food.
Correct Answer:
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