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Questions and Answers
In autarky, what limits the consumption of product X in country A?
In autarky, what limits the consumption of product X in country A?
- The ratio of endowments
- The surplus of product Y
- The ratio of complementarity (correct)
- The surplus of product X
In autarky, what represents the level of well-being for country B?
In autarky, what represents the level of well-being for country B?
- The ratio of endowments
- Point CB on the right graph of figure 1 (correct)
- The surplus of product Y
- The ratio of complementarity
What is the surplus of product X in country A in autarky?
What is the surplus of product X in country A in autarky?
- (3/2) - (1/2)
- (3/2) - (1/4) (correct)
- (1/2) - (1/4)
- (5/4) - (1/2)
What does the distance between point CA and point D on the left graph of figure 1 represent?
What does the distance between point CA and point D on the left graph of figure 1 represent?
What limits the consumption of product Y in country B during autarky?
What limits the consumption of product Y in country B during autarky?
According to the passage, what does the bilateral international trade allow two countries to do?
According to the passage, what does the bilateral international trade allow two countries to do?
In the context of the passage, what is represented by point DA on the graph?
In the context of the passage, what is represented by point DA on the graph?
Based on the information provided, what can be inferred about the preferences for products X and Y in each country?
Based on the information provided, what can be inferred about the preferences for products X and Y in each country?
What does the Leontief model illustrate according to the passage?
What does the Leontief model illustrate according to the passage?
Why does bilateral international trade become beneficial for two countries with different preferences and resources?
Why does bilateral international trade become beneficial for two countries with different preferences and resources?
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