Given the Following Constant-Cost Production-Possibilities Frontiers for Pakistan and India

Multiple Choice

Given the following constant-cost production-possibilities frontiers for Pakistan and India:

Pakistan has an autarky relative price of __________; if trade begins with India, then Pakistan would produce at point __________, assuming complete specialization.

A) 1 cloth:0.5 wheat ; (i.e., P_cloth/P_wheat = 0.5) ; A
B) 1 cloth:0.5 wheat ; (i.e., P_cloth/P_wheat = 0.5) ; B
C) 1 cloth:2 wheat ; (i.e., P_cloth/P_wheat = 2) ; A
D) 1 cloth:2 wheat ; (i.e., P_cloth/P_wheat = 2) ; B