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Author Question: A country that does NOT engage in trade can benefit from trade only if A) pre-trade and ... (Read 163 times)

rachel9

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on: Jun 30, 2018
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?


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momo1250

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Reply #1 on: Jun 30, 2018
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

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

ghepp

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Reply 3 on: Yesterday
Wow, this really help

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