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The Next Questions Refer to the Following

Question 18

Multiple Choice

The next questions refer to the following.
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
-Under these conditions,the ratio of the international price of services relative to the price of goods should fall into what range?


A) less than 9/8
B) 9/8 to 2.4
C) 4/3 to 1.6
D) 1.5 to 1.8
E) more than 2.4

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