Refer to the graph shown. We would expect that if the two countries trade with each other (and neither trades with the rest of the world):
A) Norstrilia will export manufactured goods and Graustark will export agricultural goods.
B) Norstrilia will export agricultural goods and Graustark will export manufactured goods.
C) Norstrilia will export both goods to Graustark, which will have a permanent trade deficit.
D) Graustark will export both goods to Norstrilia, which will have a permanent trade deficit.

Question

Refer to the graph shown.  We would expect that if the two countries trade with each other (and neither trades with the rest of the world):
A) Norstrilia will export manufactured goods and Graustark will export agricultural goods. 
B) Norstrilia will export agricultural goods and Graustark will export manufactured goods. 
C) Norstrilia will export both goods to Graustark, which will have a permanent trade deficit. 
D) Graustark will export both goods to Norstrilia, which will have a permanent trade deficit.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown.  We would expect that if the two countries trade with each other (and neither trades with the rest of the world):
A) Norstrilia will export manufactured goods and Graustark will export agricultural goods. 
B) Norstrilia will export agricultural goods and Graustark will export manufactured goods. 
C) Norstrilia will export both goods to Graustark, which will have a permanent trade deficit. 
D) Graustark will export both goods to Norstrilia, which will have a permanent trade deficit.

Refer to the Graph Shown