Under autarky conditions, what is the relative price of good X expressed in terms of good Y in country A?

Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.

Explanation

In autarky, the relative price of good X in terms of good Y in country A is calculated as 4/3 Y, indicating that one unit of X costs four-thirds units of Y.

Practice related questions from the same subject.

1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
2.Which of the following factors can contribute to dynamic gains from trade?
3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?

Under autarky conditions, what is the relative price of good X expressed in terms of good Y in country A?

Explanation

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