Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based 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 computer will exchange for
A. More than 3 tons of soybeans but less than 5.
B. Less than 1/5 of a ton of soybeans.
C. Zero soybeans.
D. More than 1/5 of a ton of soybeans but less than 1/3.
Answer: D
Economics
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