$\begin{array}{|c|c|c|}
\hline \text { Country } & \text { Tons of Sovbeans } & \text { Computers } \
\hline \text { China } & 100 & 300 \
\hline \text { United States } & 150 & 750 \
\hline
\end{array}$

$\text {Table $35.1$}$
$\text {Full-Employment Output of Goods}$ Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for

Question

$\begin{array}{|c|c|c|}
\hline \text { Country } & \text { Tons of Sovbeans } & \text { Computers } \
\hline \text { China } & 100 & 300 \
\hline \text { United States } & 150 & 750 \
\hline
\end{array}$

$\text {Table $35.1$}$
$\text {Full-Employment Output of Goods}$  Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.For trade to be mutually beneficial for both countries, the terms of trade will be such that 1 ton of soybeans will exchange for

Quizplus · Accepted Answer

The opportunity cost of producing 1 ton of soybeans in China is 3 computers (300 computers / 100 tons of soybeans), and in the United States, it is 5 computers (750 computers / 150 tons of soybeans). For trade to be mutually beneficial, the exchange rate must be between the opportunity costs of the two countries, hence more than 3 computers but less than 5.

Table 35.1\text {Table \(35.1\)}Table 35.1 Full-Employment Output of Goods\text {Full-Employment Output of Goods}Full-Employment Output of Goods Based on the Information in Table 35

$\text {Table \(35.1\)}$ $\text {Full-Employment Output of Goods}$ Based on the Information in Table 35