# 17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity…

17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 11 pounds of fish has a comparative advantage in the By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the production of fish. Suppose that France and Austria consider trading olives and fish with each other. France can gain from specialization and trade as long as it receives more than than of fish for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more ▼ of olives for each pound of fish it exports to France. Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and France to gain from trade? Check all that apply. 1 pound of fish per crate of olives 3 pounds of fish per crate of olives 9 pounds of fish per crate of olives 7 pounds of fish per crate of olives 17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 11 pounds of fish By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the has a comparative advantage in the production of fish France Suppose that France and Austria consider trading olives and fish with each other. France can Aspecialization and trade as long as it receives more than than of fish for each crate of olives it exports to Austria. Similarly, Ausune canl gain from trade as long as it receives more of olives for each pound of fish it exports to France. Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and France to gain from trade? Check all that apply 1 pound of fish per crate of olives 3 pounds of fish per crate of olives 9 pounds of fish per crate of olives 7 pounds of fish per crate of olives 17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 11 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the has a comparative advantage in the production of fish. Suppose that France anq more than rance onsider trading olives and fish with each other. France can gain from specialization and trade as long as it receives Austria h for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more of onvEs T each pound of fish it exports to France. than Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and France to gain from trade? Check all that apply. 1 pound of fish per crate of olives 3 pounds of fish per crate of olives 9 pounds of fish per crate of olives 7 pounds of fish per crate of olives 17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 11 pounds of fish By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the has a comparative advantage in the production of fish Suppose that France and Austria consider trading olives and fish with each other. France can gain from specialization and trade as long as it receives more than than of fish for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more plives for each pound of fish it exports to France. 1 pound Based on 】 1/11 pound the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and France to Check all that apply 1/4 pound 4 poundsper crate of olives 11 pounds h per crate of olives 9 pounds of fish per crate of olives 7 pounds of fish per crate of olives 17. Terms of trade Suppose that France and Austria both produce fish and olives. France’s opportunity cost of producing a crate of olives is 4 pounds of fish while Austria’s opportunity cost of producing a crate of olives is 11 pounds of fish By comparing the opportunity cost of producing olives in the two countries, you can tell that production of olives and has a comparative advantage in the has a comparative advantage in the production of fish. Suppose that France and Austria consider trading olives and fish with each other. France can gain from specialization and trade as long as it receives more than than ▼ of fish for each crate of olives it exports to Austria. Similarly, Austria can gain from trade as long as it receives more of olives for each pound of fish it exports to France. 1 crate wer to the last question, which of the following prices of trade (that is, price of olives in terms of fish) would allow both Austria and Base Frand 1/11 crate n trade? Check all that apply 1/4 crate of fish per crate of olives 4 crates s of fish per crate of olives s of fish per crate of olives 7 pounds of fish per crate of olives 11 crates