Multiple Choice
If two countries with increasing opportunity costs have identical PPFs but different tastes,
A) the countries will have identical relative commodity prices under autarky, and therefore there is no incentive to trade.
B) the countries will have different relative commodity prices under autarky, but there will still be no incentive for them to trade.
C) the countries will have different relative commodity prices under autarky, and each country can gain by exporting the good for which its consumers have the higher relative preference.
D) the countries will have different relative commodity prices under autarky, and each country can gain by exporting the good for which its consumers have the lower relative preference.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: (This question pertains to material in the
Q2: Given the following graph showing production-possibilities frontiers
Q3: Suppose that a country's factors of production
Q4: Suppose that the trade pattern of a
Q6: (a) Using the neoclassical production-possibilities frontier/indifference curve
Q7: Illustrate and explain, for each statement below,
Q8: In the neoclassical model of trade, the
Q9: In the equilibrium trading position in a
Q10: (a) Suppose that two countries have identical
Q11: Given the following diagram showing a fixed-quantity