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
Correct Answer:
Verified
Q12: The next questions refer to the following.
Suppose
Q13: Which of the following does not help
Q14: The central prediction of the Hecksher-Ohlin theorem
Q15: The price of a country's exports relative
Q16: Which of the following industries accounts for
Q18: In the Hotelling Rule,which of the following
Q19: The next questions refer to the following.
Suppose
Q20: An increase in a country's terms of
Q21: Which of the following assumptions is common
Q22: Differences between trade partners in real hourly
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