Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Turkey is able to produce a good, but it also imports part of this good from Egypt. The Turkish currency falls in value relative to the Egyptian currency. How would this most likely influence production of this good in Egypt and in Turkey?

  • Aproduction in Egypt: decrease; production in Turkey: decrease
  • Bproduction in Egypt: decrease; production in Turkey: increase
  • Cproduction in Egypt: increase; production in Turkey: decrease
  • Dproduction in Egypt: increase; production in Turkey: increase

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