If a Home Country Is Exporting Corn and Importing Bikes

question 105

Multiple Choice

If a home country is exporting corn and importing bikes and if the
Relative price Pc/Pb is increasing, then:

• A)the home country will export less corn.
• B)the home country will export more corn.
• C)the home country will import the same number of bikes.
• D)there is no change in the trade pattern for the home country.

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Definitions:

Goods

Physical, tangible products or merchandise that can be used, sold, or exchanged.

United Nations Convention

An international agreement formed under the United Nations' auspices, often addressing issues of global concern.

International Sale of Goods

The sale transaction of goods between parties located in different countries, governed by specific legal frameworks and treaties.

Obligations

Duties or commitments legally or morally binding an individual or entity.