The table below shows the units of land and labor required to produce a unit of bread and cheese respectively in Country X. If Country X is a relatively land-abundant country, the opening up of free trade would cause the price of bread relative to cheese to 1 Unit of Bread1 Unit of CheeseLabor Input5 units20 unitsLand Input4 units10 units
A. initially rise but fall afterward.
B. fall.
C. stay the same.
D. rise.
Answer: D
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Is discount lending used to keep banks from failing? Explain.
What will be an ideal response?
When tariffs are imposed, the losers include
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Which of the following is held constant along the demand curve?
A. income B. quantity C. price of the good D. both A and B