Quelpr
2 marksBalance of Payments and Exchange Rates

CAPE Economics Unit 2 · 2006 · Paper 1 · Question 14(a)

Domestic prices per unit of steel and corn in Highland and Lowland are provided in the table.

If the exchange rate is 1 Kor to 1 Tol, determine the imported price of steel and corn for Lowland.

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Other parts of this question

  1. 14(b)If the exchange rate is 1 Kor = 3 Tols, determine the imported price of steel and corn for Highland.[2 marks]
  2. 14(c)With an exchange rate of 1 Kor = 3 Tols, which country will import both steel and corn? Give a reason for your answer.[2 marks]

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