In a Two-Commodity, Two-Country Trading World (As in the Offer

question 12

Multiple Choice

In a two-commodity, two-country trading world (as in the offer curve diagrams) , if, at a Given terms of trade (price of good X ÷ price of good Y) , there is an excess demand for Good X, then there must __________ and the price of good X relative to the price of good Y will therefore __________.

• A) also be an excess demand for good Y; rise
• B) also be an excess demand for good Y; rise, fall, or not change - cannot be determined Without more information
• C) be an excess supply of good Y; rise
• D) be an excess supply of good Y; fall

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Definitions:

Outermost Layer

The external layer of an object or structure, which is the farthest from its center or core.

Pericardium

The double-walled sac containing the heart and the roots of the great vessels, providing protection and reducing friction.

Heart Valves

Structures within the heart that open and close to control the flow of blood through the heart's chambers and into the body.

Blood Flow

The continuous circulation of blood through the cardiovascular system, supplying nutrients and oxygen to the body.