Suppose that italy and austria both produce beer and wine. italy's opportunity cost of producing a bottle of wine is 4 barrels of beer while austria's opportunity cost of producing a bottle of wine is 11 barrels of beer.
by comparing the opportunity cost of producing wine in the two countries, you can tell that italy has a comparative advantage in the production of wine and austria has a comparative advantage in the production of beer.
suppose that italy and austria consider trading wine and beer with each other. italy can gain from specialization and trade as long as it receives more than 4 barrels of beer for each bottle of wine it exports to austria. similarly, austria can gain from trade as long as it receives more than 1/11 bottle of wine for each barrel of beer it exports to italy.
based on your answer to the last question, which of the following terms of trade (that is, price of wine in terms of beer) would allow both austria and italy to gain from trade? check all that apply.
9 barrels of beer per bottle of wine
18 barrels of beer per bottle of wine
7 barrels of beer per bottle of wine
3 barrels of beer per bottle of wine

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work