Wool Coal New Zealand 30 24 |40 40 Australia New Zealand has access to 500 resources, Australia has access to 400 resources. Under autarky, both countries allocate resources equally between the two goods. Which of the following statements is true if we allow for trade to occur between Australia and New Zealand? O a. Trade will occur as long as the exchange rate for wool is between 1 and 1.25 units of coal. O b. Trade will occur as long as the exchange rate for coal is between 1.33 and 1.67 units of wool. Oc. Trade will occur as long as the exchange rate for coal is between 1 and 1.25 units of wool. O d. Trade will occur as long as the exchange rate for wool is between 1.33 and 1.67 units of coal.
Wool Coal New Zealand 30 24 |40 40 Australia New Zealand has access to 500 resources, Australia has access to 400 resources. Under autarky, both countries allocate resources equally between the two goods. Which of the following statements is true if we allow for trade to occur between Australia and New Zealand? O a. Trade will occur as long as the exchange rate for wool is between 1 and 1.25 units of coal. O b. Trade will occur as long as the exchange rate for coal is between 1.33 and 1.67 units of wool. Oc. Trade will occur as long as the exchange rate for coal is between 1 and 1.25 units of wool. O d. Trade will occur as long as the exchange rate for wool is between 1.33 and 1.67 units of coal.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 31P: Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil...
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