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SECTION A
QUESTION A.1
Ozland has closed itself off to international trade. Ozland citizens noticed that the policy shift resulted in no change in the prices of computers, why may that be?
A. Autarky prices and free trade prices are the same.
B. Autarky prices are larger than free trade prices.
C. Autarky prices are smaller than free trade prices.
D. The absolute value of autarky prices are negatively correlated with free trade prices. (1 mark)
Explain your answer in up to 200 words and using a diagram
(4 marks)
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