6 Caves/Frankel/Jones - World Trade and Payments: An Introduction, Tenth Edition
16. In a world with many countries and only food and clothing, if countries all have the same
endowments but different tastes,
Answer: (c)
17. If a country experiences an improvement in technology,
Answer: (c)
18. Efficient consumption in autarky
Answer: (b)
19. In autarky, a preference shift towards food
Answer: (c)
20. If the relative world price of food is lower than the autarky price,
Answer: (c)
21. A sharply bowed-out production possibilities frontier embodies
Answer: (c)
22. A country that has a comparative advantage in clothing production
Answer: (e)
23. In autarky, a country produces a number of varieties of an aggregate good. Trade will
Answer: (d)
24. All of the following are sources of gains from trade except
Answer: (d)
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