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The Relative Price of a Unit of Cloth in the Small

question 40

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The relative price of a unit of cloth in the small isolated country of Moribundia is 5 units of food.When then 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.


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