Assume country A specializes in producing wheat and country B specializes in palm oil. After the trade , country A exports 300 tons of wheat and imports 100 tons of palm oil from country B. The term of trade :

A. are 1 : 3 wheat to palm oil
B 3 : 1 Wheat to plam oil
C. 1 : 1/3 wheat to palm oil

@whpalmer4

Question

Assume country A specializes in producing wheat and country B specializes in palm oil. After the trade , country A exports 300 tons of wheat and imports 100 tons of palm oil from country B. The term of trade :

A. are 1 : 3 wheat to palm oil
B 3 : 1 Wheat to plam oil
C. 1 : 1/3 wheat to palm oil

@whpalmer4

anonymous · Answer

@Luigi0210

whpalmer4 · Answer

I'm mystified as to the essential difference between answers B and C.  Mathematically, they seem to be equivalent; is there some important distinction I'm missing?

anonymous · Answer

The answer is C. but I dont know how calculate . :(

whpalmer4 · Answer

If C is the proper answer, then apparently you take the ratio of 1:B/A which is just A:B with both quantities divided by A...