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Assume that country a exports on bushel of wheat in exchange for 2.5 bushels of corn from country b. if the terms of trade are beneficial to both countries, which of the following must be true? a. country a has an absolute advantage in the production of wheat. b. the cost of producing a bushel of wheat in country a is less than 2.5 bushels of corn. c. the cost of producing a bushel of wheat in country a is greater than 2.5 bushels of corn. d. country a needs to use more resources to produce wheat than to produce corn. e. country a is producing inside its current production possibility curve.
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Assume that country a exports on bushel of wheat in exchange for 2.5 bushels of corn from country b....
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