Suppose Nation 1 Has a Comparative Advantage in Good X

question 3

Multiple Choice

Suppose Nation 1 has a comparative advantage in good X over Nation 2 and the two nations are currently engaged in equilibrium trade for good X.A decrease in the cost of producing good X in Nation 2 would cause the international price of good X to _______ and the quantity of good X traded to ______.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Intermediate-Frequency

A frequency range that lies between the high frequency and low frequency bands, often used in radio frequency applications.

High Frequencies

Sound waves that have a very short wavelength and are typically perceived as high-pitched sounds.

Place Principle

A theory in auditory perception that suggests different parts of the cochlea are activated by different frequencies of sound, contributing to the perception of pitch.

Absolute Pitch

Absolute Pitch is the rare ability to identify or produce a musical note without any reference point or external aid, often referred to as perfect pitch.