Suppose that a country can convert wheat into textiles at a ratio of 3W = 1T. If the country could trade at 2.9W = 1T, it would be better off not trading. Explain why this statement is true or false.

Name: Suppose that a country can convert wheat into textiles at a ratio of 3W = 1T. If the country could trade at 2.9W = 1T, it would be better off not trading. Explain why this statement is true or false.
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Question

Quizplus · Accepted Answer

The country can gain 0.1 wheat for every 1 textile it trades with the foreign country.

Suppose That a Country Can Convert Wheat into Textiles at a Ratio