worker in Pakistan can produce either 5 units of food per day or 15 yards of cloth. A worker in India can produce either 1 food per day or 5 yards of cloth. Trade between India and the Pakistan would definitely occur where the price of food in terms of cloth (terms of trade) is: a. Pf/ Pc = 7 or 1F = 7C. b. Pf/ Pc = 6 or 1F = 6C c. Pf/ Pc = 2 or 1F = 2C. d. Pf/ Pc = 4 or 1F = 4C. e. None af the above.
worker in Pakistan can produce either 5 units of food per day or 15 yards of cloth. A worker in India can produce either 1 food per day or 5 yards of cloth. Trade between India and the Pakistan would definitely occur where the price of food in terms of cloth (terms of trade) is: a. Pf/ Pc = 7 or 1F = 7C. b. Pf/ Pc = 6 or 1F = 6C c. Pf/ Pc = 2 or 1F = 2C. d. Pf/ Pc = 4 or 1F = 4C. e. None af the above.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter33: International Trade
Section33.1: International Trade Theory
Problem 2ST
Related questions
Question
Choose one from the following:
A worker in Pakistan can produce either 5 units of food per day or 15 yards of cloth. A worker in India can produce either 1 food per day or 5 yards of cloth.
Trade between India and the Pakistan would definitely occur where the
a. Pf/ Pc = 7 or 1F = 7C.
b. Pf/ Pc = 6 or 1F = 6C
c. Pf/ Pc = 2 or 1F = 2C.
d. Pf/ Pc = 4 or 1F = 4C.
e. None af the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning