A-LevelEconomicsInternational economic issues9708/12 · May/June 2013 · Q191 Mark
The table shows the costs of producing a unit of food and a unit of clothing in countries X and Y, expressed in the currency of each country. The exchange rate is fixed at £1 = $3. What level of transport cost per unit of each commodity would exactly eliminate the benefits of trade? [Table with columns: country, food, clothing]
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A£0.33
B£0.50
C£1.00
D£1.50
✓ Correct answer
A: £0.33
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