Multiple Choice
Given the diagram below, in which country A is producing at point P and consuming at point C:![Given the diagram below, in which country A is producing at point P and consuming at point C: Country A is __________, and the ratio of the price of food relative to the price of books [i.e., (P<sub>food</sub>/P<sub>books</sub>) ] reflected by price line P<sub>0</sub> is __________ than the (P<sub>food</sub>/P<sub>books</sub>) ratio that existed when country A was in autarky. A) exporting food and importing books; lower B) exporting food and importing books; higher C) exporting books and importing food; lower D) exporting books and importing food; higher](https://d2lvgg3v3hfg70.cloudfront.net/TB1413/11eae5e0_9cea_5802_bcb4_e7368fa1eec9_TB1413_00.jpg)
Country A is __________, and the ratio of the price of food relative to the price of books [i.e., (Pfood/Pbooks) ] reflected by price line P0 is __________ than the (Pfood/Pbooks) ratio that existed when country A was in autarky.
A) exporting food and importing books; lower
B) exporting food and importing books; higher
C) exporting books and importing food; lower
D) exporting books and importing food; higher
Correct Answer:
Verified
Correct Answer:
Verified
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