Solved

The Table Given Below Shows the Units of Land and Labor

Question 2

Multiple Choice

The table given below shows the units of land and labor required to produce a unit of bread and cheese respectively in country X. If country X is a relatively land-abundant country, the opening up of free trade would cause the price of bread relative to cheese to:  1 urit of Bread  1 unit of Cheese  Labor Input 5 units 20 units  Land Input 4 units 10 units \begin{array} { | c | c | c | } \hline & \text { 1 urit of Bread } & \text { 1 unit of Cheese } \\\hline \text { Labor Input } & 5 \text { units } & 20 \text { units } \\\hline \text { Land Input } & 4 \text { units } & 10 \text { units } \\\hline\end{array}


A) rise.
B) fall.
C) stay the same.
D) initially rise but fall afterward.

Correct Answer:

verifed

Verified

Related Questions