1Assume that Great Britain and the United States can both produce wheat (W) and cloth (C). The amount of wheat and cloth that eachnation can produce in one day is presented in the table below.Comparative AdvantageWheatClothGreat Britain140480United States1,120560Instructions: Round your answers to two decimal places.еВooka. Use the information above to compute the opportunity cost of1 unit of wheat in each country.For Great Britain, the opportunity cost of producing 1 unit of wheat is3.42 unit(s) of cloth.PrintFor the United States, the opportunity cost of producing 1 unit of wheat is0.5 unit(s) of cloth.b. Use the information above to compute the opportunity cost of producing 1 unit of cloth in each country.ReferencesFor Great Britain, the opportunity cost of producing 1 unit of cloth is0.29 unit(s) of wheat.For the United States, the opportunity cost of producing 1 unit of cloth is2 unit(s) of wheat.c. With mutually beneficial trade, wheat will be exported by the United States v at a price higher thanunit(s) of cloth but lowerthanunit(s) of cloth.d. With mutually beneficial trade, cloth will be exported by Great Britainv at a price higher thanunit(s) of wheat but lowerthanunit(s) of wheat.e. Assume that internationally 1 unit of wheat can be traded for 1.4 units of cloth, which is the same as 1C = 0.71W. Which of thefollowing statements is correct?Only Great Britain will benefit from trade.Only the United States will benefit from trade.Both nations will benefit from trade.Neither nation will benefit from trade.

Countries wheat production cloth production Great Britain 140 480 United States 1120 560 This…

Answered: han unit(s) of cloth. 1. With mutually…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

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han unit(s) of cloth. 1. With mutually beneficial trade, cloth will be exported by Great Britain han v at a price higher than unit(s) of wheat but low unit(s) of wheat.