12. (LO 2, 3) Suppose three countries have productivity data as shown in Table 10.19.

a) What is the cost of wheat in each country?

In Alpha, 1 unit of wheat costs .

In Beta, 1 unit of wheat costs .

In Gamma, 1 unit of wheat costs

b) Which country can produce wheat the most cheaply (comparatively)?

c) Which country can produce beans the most cheaply (comparatively)?

d) Suppose that the international terms of trade were 1 wheat = 3/4 beans. Which countries would export wheat? Which countries would import wheat?

e) Suppose, instead, that the international terms of trade were 1 wheat = 1½ beans. Which countries would export wheat? Which countries would import wheat?