The table shows the numbers of goods X and Y which two countries produce. Each country uses half of its resources to make each good.
Later, each country specialises in the product in which it has a comparative advantage.
Which rate of exchange would be suitable so each country gains from trade?
1 )
1X = 1Y
1X = 1.5Y
3 )
1X = 2Y
4 )
1X = 3Y
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