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:

Centration

Centration is a term from cognitive psychology describing a tendency to focus on one aspect of a situation while neglecting others, common in early childhood development.

Conservation

A cognitive ability, identified by Jean Piaget, that allows a person to understand that certain properties of objects remain the same despite changes in the object's form or appearance.

Scaffolding

Pedagogical technique that provides supportive structures and tools to aid learning, allowing students to perform tasks they cannot do independently.

Model Airplane

A scaled-down replica of an aircraft, used for display, hobby building, or flying competitions.