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The Relative Price of a Unit of Cloth in the Small

question 9

Multiple Choice

The relative price of a unit of cloth in the small isolated country of Moribundia is 5 units of food. When the central city, Mudhole, puts in an airstrip, the country is able to engage in trade. If the relative price of cloth in the outside world is 3 units of food, then Moribundia will export ________ and ________ factors used in the production of ________ will benefit.


Definitions:

Hearing Aid

A small electronic device worn in or behind the ear that amplifies sound for people with hearing impairments.

Worker

An individual engaged in a specific task or job, usually for payment, contributing to the production process in an economy.

Marginal Revenue Product

The extra income derived from the utilization of an additional input unit.

Additional Revenue

Typically refers to incremental income generated from increased sales or services, beyond what is normally expected.

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