【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.