-Refer to Above Figure

question 58

Essay

-Refer to above figure. In autarky, Country P was producing at point 5. With trade, would its production point be found above or below point 5?
Explain why. What must happen in the K/L intensity ratio in the production of each of the products in this country when moving from autarky to free trade?

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Definitions:

Theory

A systematically organized set of concepts, explanations, and propositions that explain or predict events or situations by specifying relations among variables.

Visual System

The part of the central nervous system that allows organisms to see, including the eyes, optic nerves, and visual areas of the brain.

Fully Develop

Fully Develop means to reach the maximum potential or maturity in physical, mental, emotional, or cognitive aspects.

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Units of time, typically consisting of 28 to 31 days, used in calendars to divide the year into twelve periods.