The relative price of a unit of cloth in the small isolated country of Moribundia is 5 units of food. When then central city, Mudhole, puts in an airstrip, the country is able to engage in trade
If the relative price of cloth in the outside world is 3 units of food, then Moribundia will export ________ and ________ factors used in the production of ________ will benefit. A) food; immobile; food
B) food; mobile; food
C) cloth; immobile; cloth
D) cloth; mobile; cloth
E) food; immobile; cloth
A
Economics
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Arbitrage is:
a. capital controls. b. interest rate management by the central bank. c. exploiting profit opportunities in the market resulting from price differences. d. investing in junk bonds or businesses that are not ethical.
Economics
As capital deepening occurs, there will be increased real wages and economic growth
Indicate whether the statement is true or false
Economics