If a Country's Relative Price of X (Compared to Y)

question 17

Multiple Choice

If a country's relative price of X (compared to Y) in autarky is greater than the same relative prices on the world market, then the country has a comparative advantage in good __________, and it will __________.

• A) X; export Y and import X
• B) X; export X and import Y
• C) Y; export Y and import X
• D) Y; export X and import Y

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Definitions:

Asphalt Shingles

Asphalt shingles are a type of roofing material made from fiberglass or organic materials saturated with asphalt and coated with mineral granules, used for waterproofing roofs.

Commercial Impracticability

A doctrine that allows parties to a contract to be excused from performing their obligations when unforeseen events make performance excessively difficult or costly.

Discharge

The completion, termination, or fulfillment of a legal duty, obligation, or debt.

Performance

The execution, accomplishment, or fulfillment of duties, contracts, or other obligations according to their terms.