1. A good terms of trade would be:
A) 1 car for 1 truck
B) 1 car for 2 trucks
C) 1 car for 3 trucks
D) 1 car for 4 trucks
E) Cannot be determined with the information that is given.
2. Using the correct answer in question 1, if Country B traded away 6 trucks, how many cars would it receive from Country A?
A) 2 cars
B) 3 cars
C) 4 cars
D) 5 cars
E) 6 cars
3. If the terms of trade were 2 cars for 7 trucks which country would benefit by this trade?
A) Neither country would benefit.
B) Both countries would benefit.
C) Only Country A would benefit.
D) Only Country B would benefit.
E) Cannot be determined with the information given.