In a Production-Possibilities/indifference Curve Diagram, When a (Small) Country Moves

question 11

Multiple Choice

In a production-possibilities/indifference curve diagram, when a (small) country moves From a situation of free trade to a situation of a uniform ad valorem tariff on imports from All trading partners, the ratio of the domestic price of the country's export good to the Domestic price of the country's import good __________.

• A) will increase
• B) will not change
• C) will decrease
• D) will increase, not change, or decrease - cannot be determined without more
• Information