Homework Help is Here – Start Your Trial Now!
Business
Economics
2. If Home has a comparative advantage in the production of good 1, then when the economy in Foreign. opens the relative price of good 1 in Home and a. increases, increases b. increase, decreases c. decreases, increases d. decreases, decreases

2. If Home has a comparative advantage in the production of good 1, then when the economy in Foreign. opens the relative price of good 1 in Home and a. increases, increases b. increase, decreases c. decreases, increases d. decreases, decreases

ECON MACRO
ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter17: International Trade
Section: Chapter Questions
Problem 1.3P
See similar textbooks
icon
Related questions
Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

2. If Home has a comparative advantage in the production of good 1, then when the economy opens the relative price of good 1 in Home and in Foreign. a. increases, increases b. increase, decreases c. decreases, increases d. decreases, decreases 3. Assume Home has a comparative advantage in the production of good 1. When the economy opens and begins trading with Foreign, which of the following occurs? a. the relative price of good 1 increases b. industry 1 expand and industry 2 contracts c. the real wage in units of good 2 increases d. all of the above
Transcribed Image Text:2. If Home has a comparative advantage in the production of good 1, then when the economy opens the relative price of good 1 in Home and in Foreign. a. increases, increases b. increase, decreases c. decreases, increases d. decreases, decreases 3. Assume Home has a comparative advantage in the production of good 1. When the economy opens and begins trading with Foreign, which of the following occurs? a. the relative price of good 1 increases b. industry 1 expand and industry 2 contracts c. the real wage in units of good 2 increases d. all of the above
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Comparative Advantage
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
ECON MACRO
ECON MACRO
Economics
ISBN:
9781337000529
Author:
William A. McEachern
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS