Without Trade the Price of One Unit of Product Y

question 56

Multiple Choice

Without trade the price of one unit of product Y is 1/3 that of one unit of X in a small country.
Products X and Y trade on the world market at equal prices.If the small country starts trading with the rest of the world:

• A)the small country would import product Y.
• B)the small country would export both product X and product Y.
• C)the domestic price of product X would equal the world price.
• D)the relative price of X and Y would not change in the small country.

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Definitions:

Accounting Services

Professional services involving the maintenance, auditing, and analysis of financial records and transactions for individuals or businesses.

Contractual Terms

Stipulations, clauses, and conditions outlined in a contract that define the obligations, rights, and duties of the parties involved.

Securities Act Of 1933

A U.S federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about investments, and to establish laws against misrepresentation and fraudulent activities in the securities markets.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with the Securities and Exchange Commission before a company offers securities for sale to the public.