【单选题】Suppose country X partially specializes in the production of only two goods, food and clothing. At the initial free trade equilibrium, the country produced 40 units of food and 20 units of clothing. A...
A.
consumption of clothing rises to 32 units.
B.
the size of country X’s trade triangle has increased.
【单选题】Suppose country X is one of the largest exporter of coffee in the world. A recent massive cyclone has destroyed much of the coffee crop in country X and has considerably lowered its exports. Which of ...
A.
The size of country X’s trade triangle will increase.
B.
The price of coffee in the international market will decline.
C.
The price of country X’s imports relative to the price of its exports will increase unambiguously.
【单选题】Suppose country A and country B are the only two countries in the world. Country A imports good X from country B and exports good Y. In the absence of any transportation cost, at the world price of go...
A.
country B’s export supply curve is perfectly inelastic.
B.
both country A’s import demand curve and country B’s export supply curve are positively sloped.
C.
country A’s import demand curve will be perfectly inelastic
D.
country A’s import demand curve will intersect country B’s export supply curve.