The Relative Price of a Unit of Cloth in the Small

question 50

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 8 units of food, then Moribundia will export ________ and ________ factors used in the production of ________ will benefit.

• A) cloth; immobile; food
• B) food; mobile; food
• C) food; immobile; food
• D) cloth; immobile; cloth
• E) cloth; mobile; cloth

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Definitions:

Culture

The shared beliefs, values, norms, and practices that characterize a group of people, shaping their behavior and understanding of the world.

Symbols

Visual, verbal, or written signs or objects that represent or stand for something else, often conveying ideas, concepts, or values.

Beliefs

Acceptance by the mind that something is true or real, often underpinned by an emotional or spiritual sense of certainty.

Norms

Established standards of behavior or guidelines that are considered normal within a group or society.