In the Following Graph Showing Indifference Curves for Country a (A₁)

question 26

Multiple Choice

In the following graph showing indifference curves for country A (a₁) and for country B (b₁) in a situation where both countries have the same production-possibilities frontier, in Autarky, P_X/P_Y in country A is __________ P_X/P_Y in country B, and, if trade begins, ountry A will export good __________.

• A) less than; X
• B) less than; Y
• C) greater than; X
• D) greater than; Y

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