The Relative Price of a Unit of Cloth in the Small

question 47

Multiple Choice

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 3 units of food,then Moribundia will export ________ and ________ factors used in the production of ________ will benefit.

• A) food; immobile; food
• B) food; mobile; food
• C) cloth; immobile; cloth
• D) cloth; mobile; cloth
• E) food; immobile; cloth

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