According to the following table,the US can gain from trade with the UK by getting how much cloth for 9 bushels of wheat?
$\begin{array}{|l|c|c|}
\hline &\text { U.S. }&\text { U.K.} \
\hline \text {Wheat (bushels/hr) }& 9 & 3 \
\hline\text { Cloth (yards/hr) }& 5 & 4 \
\hline
\end{array}$
A)Only less than 12 yards of cloth
B)Only greater than 9 yards of cloth
C)Anything less than 5 yards of cloth
D)Anything greater than 5 yards of cloth

Question

According to the following table,the US can gain from trade with the UK by getting how much cloth for 9 bushels of wheat? 
$\begin{array}{|l|c|c|}
\hline &\text { U.S. }&\text { U.K.} \
\hline \text {Wheat (bushels/hr) }& 9 & 3 \
\hline\text { Cloth (yards/hr) }& 5 & 4 \
\hline
\end{array}$
A)Only less than 12 yards of cloth
B)Only greater than 9 yards of cloth
C)Anything less than 5 yards of cloth
D)Anything greater than 5 yards of cloth

Quizplus · Accepted Answer

Looking at the table, we can see that the UK has a comparative advantage in producing cloth as it can produce more cloth with fewer resources than the US. On the other hand, the US has a comparative advantage in producing wheat. Therefore, through trade, the US can get more cloth for a given amount of wheat. From the table, we can see that the UK is willing to give up 5 yards of cloth for 9 bushels of wheat, which means the US can get anything greater than 5 yards of cloth for 9 bushels of wheat. Thus, the best choice is D - anything greater than 5 yards of cloth.

According to the Following Table,the US Can Gain from Trade