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If the ratio of the dollar price of a U.S. toy to the dollar price of the same toy sold in China is ...

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If the ratio of the dollar price of a U.S. toy to the dollar price of the same toy sold in China is ...

If the ratio of the dollar price of a U.S. toy to the dollar price of the same toy sold in China is greater than 1, U.S. toys are ________ than Chinese toys and retailers in the United States should ________.

▸ cheaper; buy the toys from American suppliers

▸ more expensive; buy the toys from American suppliers

▸ cheaper; buy the toys from Chinese suppliers

▸ more expensive; buy the toys from Chinese suppliers

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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