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Given the Following Constant-Cost Production-Possibilities Frontiers for Pakistan and India

question 10

Multiple Choice

Given the following constant-cost production-possibilities frontiers for Pakistan and India:
Given the following constant-cost production-possibilities frontiers for Pakistan and India:   Pakistan has an autarky relative price of __________; if trade begins with India, then Pakistan would produce at point __________, assuming complete specialization. A)  1 cloth:0.5 wheat ; (i.e., P<sub>cloth</sub>/P<sub>wheat</sub> = 0.5) ;  A B)  1 cloth:0.5 wheat ; (i.e., P<sub>cloth</sub>/P<sub>wheat</sub> = 0.5) ;  B C)  1 cloth:2 wheat ; (i.e., P<sub>cloth</sub>/P<sub>wheat</sub> = 2) ;  A D)  1 cloth:2 wheat ; (i.e., P<sub>cloth</sub>/P<sub>wheat</sub> = 2) ;  B
Pakistan has an autarky relative price of __________; if trade begins with India, then Pakistan would produce at point __________, assuming complete specialization.


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