The country Autarka does not allow international trade.In Autarka, you can buy a wool suit for 3 ounces ofgold. Meanwhile, in neighboring countries, you can buythe same suit for 2 ounces of gold. This suggests thata. Autarka has a comparative advantage inproducing suits and would become a suitexporter if it opened up trade.b. Autarka has a comparative advantage inproducing suits and would become a suitimporter if it opened up trade.c. Autarka does not have a comparative advantagein producing suits and would become a suitexporter if it opened up trade.d. Autarka does not have a comparative advantagein producing suits and would become a suitimporter if it opened up trade
The country Autarka does not allow international trade.
In Autarka, you can buy a wool suit for 3 ounces of
gold. Meanwhile, in neighboring countries, you can buy
the same suit for 2 ounces of gold. This suggests that
a. Autarka has a
producing suits and would become a suit
exporter if it opened up trade.
b. Autarka has a comparative advantage in
producing suits and would become a suit
importer if it opened up trade.
c. Autarka does not have a comparative advantage
in producing suits and would become a suit
exporter if it opened up trade.
d. Autarka does not have a comparative advantage
in producing suits and would become a suit
importer if it opened up trade
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