If a Country's P_X/P_Y in Autarky Is Less Than the P_X/P_Y

question 19

Multiple Choice

If a country's P_X/P_Y in autarky is less than the P_X/P_Y on the world market, then, as the Country moves from autarky to trade, the relative price of good Y will __________ for Home consumers. Thus, consumers with a strong relative preference for good __________ would tend to oppose the movement to trade.

• A) increase; Y
• B) increase; X
• C) decrease; Y
• D) decrease; X

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Definitions:

Social Category

A Social Category represents a group of people who share a common characteristic or attribute but do not necessarily interact or identify with each other.

Similar Status

A condition where individuals or entities share comparable levels of prestige, importance, or hierarchy within a social or organizational structure.

Identify

The act of recognizing or establishing who or what someone or something is.

Proportion

A part, share, or number considered in comparative relation to a whole, often used to describe the relationship between different quantities or measurements.