Multiple Choice
If a country's PX/PY in autarky is less than the PX/PY on the world market, then this country has a comparative advantage in the __________ good, and, if the country now engages in international trade and moves along its production-possibilities frontier, its
Production of the X good will __________.
A) Y; increase
B) Y; decrease
C) X; decrease
D) X; increase
Correct Answer:

Verified
Correct Answer:
Verified
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
Q12: In the neoclassical (or modern) theory, two
Q14: Which of the following does not contribute
Q15: Given the production-possibilities-frontier/community-indifference-curve diagram below,Where P is
Q16: In the diagram in Question #16 above,
Q17: "In a situation of increasing opportunity costs,
Q18: If country A's (P<sub>X</sub>/P<sub>Y</sub>) in autarky is