The Relative Price of a Unit of Cloth in the Small

question 40

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

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

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Definitions:

Identification

the act of determining or verifying the identity of a person or object, often through documents like ID cards or digital means.

Shipped

Refers to goods that have been transported from one location to another, usually through the use of a carrier or logistical service.

Specific Goods

Goods that are identified and agreed upon at the time a contract of sale is made.

F.O.B. New York

A shipping term indicating that the seller must deliver goods on board a vessel at the port of New York, with the buyer being responsible for freight and insurance.