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.
-If by international treaty the ratio of the price of services to the price of goods was held at 1.5,then
A) neither country would benefit from trade
B) both countries will benefit from trade
C) only Canada would benefit from trade; Mexico would lose
D) only Mexico would benefit from trade; Canada would lose
E) Mexico would benefit from trade; Canada would neither gain nor lose
Correct Answer:
Verified
Q7: The idea that efficient producers can benefit
Q8: Which of the following is not an
Q9: Applied to trade in two goods between
Q10: The largest exporter of goods and services
Q11: As a general rule,
A) large economies tend
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
Q17: The next questions refer to the following.
Suppose
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents