(This Question Pertains to Material in Appendix C In This Situation, Country A's Index of Intra-Industry Trade Would

question 3

Multiple Choice

(This question pertains to material in Appendix C.)
Suppose that country A has only three categories of traded goods and that A's exports and imports in the three categories are as shown in the table below:
$\begin{array} { l cc } & \text { exports } & \text { imports } \\\text { good T } & \$ 30 & \$ 100 \\\text { good W } & 60 & 20 \\\text { good X } & 60 &80 \\\\\text { total } & \$ 150 & \$ 200\end{array}$
In this situation, country A's index of intra-industry trade would have a value of
__________.

• A) 0.3
• B) 0.4
• C) 0.6
• D) 0.7

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