Given the Information in the Table Above, If the World

question 12

Multiple Choice

Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then

• A) both countries could benefit from trade with each other.
• B) neither country could benefit from trade with each other.
• C) each country will want to export the good in which it enjoys comparative advantage.
• D) neither country will want to export the good in which it enjoys comparative advantage.
• E) both countries will want to specialize in cloth.

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Definitions:

11th-Century England

A period in England's history marked by the Norman Conquest of 1066, significant social change, and the early development of feudalism.

Danish Empire

Historical period marked by the expansion and influence of Denmark, especially during the time of its colonial holdings and maritime dominance.

Palace Chapel

A chapel located within a palace, serving as a place of worship primarily for the royal court.

Aachen

A city in western Germany known for its historical significance as the residence of Charlemagne and the site of his Palatine Chapel, a masterpiece of Carolingian architecture.