Use the Following to Answer Questions

question 47

Multiple Choice

Use the following to answer questions :
Figure 18-1
-Which of the following could emerge as the ratio of the price of food to the price of clothing if trade were opened between the U.S.and Europe as depicted in Figure 18-1?

• A)0.4.
• B)0.7.
• C)1.0.
• D)1.2.
• E)3.0.

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.