Neco 2018 Economics Question 19
Practice objective / multiple choice question 19 from the 2018 Neco Economics examination.
Country X can produce either coffee or wheat. If it uses all its resources for coffee it can produce 120 units of coffee and 0 wheat; if it uses all resources for wheat it can produce 0 coffee and 360 units of wheat. The autarky relative price of coffee in terms of wheat is therefore 3 wheat per coffee. After opening to trade the world price of coffee falls to 2 wheat per coffee (the world price of wheat remains unchanged).\nIf Country X decides to specialize completely in coffee, how many units of wheat can it import by trading all its coffee at the world price?
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About This Question
This is Neco 2018 Economics Question 19. It is one of the objective questions from the 2018 Neco Economics examination.
Difficulty level: Medium .
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