A country that does NOT engage in trade can benefit from trade ...

[rachel9]

A country that does NOT engage in trade can benefit from trade only if
 
  A) pre-trade and free-trade relative prices are not identical.
  B) it employs a unique technology.
  C) it has an absolute advantage in at least one good.
  D) its wage rate is below the world average.
  E) pre-trade and free-trade relative prices are identical.

Question 2

Under the gold standard, if the dollar price of gold is pegged at 35 per ounce and the dollar/euro exchange rate is set at 2.40 per euro, what must the euro price of gold be pegged at?
 
  What will be an ideal response?

[momo1250]

Answer to Question 1

A

Answer to Question 2

The euro price of gold is constant and equal to
(35 per ounce) / (2.40 per euro) = 14.58 euro per ounce.

[rachel9]

Great answer, keep it coming

[JaynaD87]

Thanks for the timely response, appreciate it