-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 37

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Suppose each country is in competitive equilibrium prior to free trade being allowed.Once free trade is allowed,the price of food will be

• A) two times the price of clothing.
• B) equal to the price of clothing.
• C) one-half the price of clothing.
• D) somewhere between one-half the price of clothing and the price of clothing, depending upon the relative bargaining power of the two countries.

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Definitions:

SES

Abbreviation for Socioeconomic Status, a measure of an individual's or family's economic and social position compared to others, based on income, education, and occupation.

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A condition of suffocation and potential death caused by inhalation of water or other liquid, leading to respiratory impairment.

Obesity

A condition characterized by excessive body fat that increases the risk of health problems.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, and others, leading to impaired heart function.