That's a statement.
If its T/F, That is true <span />
Bro i don't know this is my brothers college homework
Answer:
Mexico export 1 unit of cloth and import 2 unit of food
Explanation:
given data
Mexico’s cost producing 1 unit of food = 3 units of clothing
US cost producing 1 unit of food = 0.5 units of clothing
Trade ratio = 1:1
to find out
How beneficial would it be for Mexico
solution
as given in question we know that Mexico opportunity cost of producing food is lower in the US
so here United States will produce food and Mexico will produce cloth
and trade ratio is 1:1 so that Mexico has export 1 unit of cloth and can import 1 unit of food
and
when the trade ratio is 1 unit of clothing for every 2 unit of food
Mexico export 1 unit of cloth and import 2 unit of food
so as that Mexico will gains more by later trade ratio
It is answered by the CBO or the Congressional Budget Office =).a.congressional bugget office Hope this helps, <span>Arraliciuc!</span>
