(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under the condition of no trade, what is the relative price of manufacturing goods?
A) 1.66 of the agricultural good in Home
B) 0.40 of the agricultural good in Foreign
C) 0.60 of the agricultural good in Home
D) 0.40 of the agricultural good in Foreign and 0.60 of the agricultural good in Home

Question

(Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under the condition of no trade, what is the relative price of manufacturing goods? 
A) 1.66 of the agricultural good in Home 
B) 0.40 of the agricultural good in Foreign 
C) 0.60 of the agricultural good in Home 
D) 0.40 of the agricultural good in Foreign and 0.60 of the agricultural good in Home

Quizplus · Accepted Answer

The Answer of (Table: Home and Foreign Prices for Manufacturing and Agriculture) Consider the information provided about the price of agriculture and manufacturing goods in two countries (Home and Foreign). Under the condition of no trade, what is the relative price of manufacturing goods? 
A) 1.66 of the agricultural good in Home 
B) 0.40 of the agricultural good in Foreign 
C) 0.60 of the agricultural good in Home 
D) 0.40 of the agricultural good in Foreign and 0.60 of the agricultural good in Home