If a country’s PX/PY in autarky is less than the PX/PY on the world market, then, as the country moves from autarky to trade, the relative price of good Y will for home consumers. Thus, consumers with a strong relative preference for good would tend to oppose the movement to trade.

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation