In country X, it takes 50 labor hours to produce cloth and 100 hours to produce grain. In country Y, it takes 200 labor hours to produce cloth and 200 hours to produce grain. At what price would X start to be willing to trade with Y?
A. More than half a unit of grain per unit of cloth.
B. More than half a unit of cloth per unit of grain.
C. More than a quarter unit of grain per unit of cloth.
D. More than a quarter unit of cloth per unit of grain.
Answer:A
In country X, it takes 50 labor hours to produce cloth and 100 hours to produce grain. In country Y, it takes 200 labor hours to produce cloth and 200 hours to produce grain. At what price would X start to be willing to trade with Y?
A. More than half a unit of grain per unit of cloth. B. More than half a unit of cloth per unit of grain. C. More than a quarter unit of grain per unit of cloth. D. More than a quarter unit of cloth per unit of grain.