In free trade a country will not trade if A. Autarky prices and free trade prices...

In free trade a country will not trade if

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.

QUESTION A.3

In the Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then

A. Both owners of K and owners of A will benefit.

B. Owners of A will benefit.

C. Owners of K will benefit.

D. Neither owners of K nor owners of A will benefit.

QUESTION A.4

In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then

A. Both owners of K and owners of A will benefit.

B. Owners of A will benefit.

C. Owners of K will benefit.

D. Neither owners of K nor owners of A will benefit.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Moving from autarky to free trade generates gains for a country. What are the sources of...

Moving from autarky to free trade generates gains for a country. What are the sources of these gains and explain how each results in a gain for the country.

There are A B country, they start to free trade. If A put a traffi on...

There are A B country, they start to free trade. If A put a traffi on import, the world price will increase or decrease? And how about the demostic price for A And B? And if A put a traffi on export, How about the world price,domestic of A, B ?

hich of the following is TRUE regarding international trade? Trade benefits everyone compared to autarky A...

hich of the following is TRUE regarding international trade? Trade benefits everyone compared to autarky A country will prefer autarky if it has absolute advantage in producing every good Trade benefits occur through a rise in real wages None of the above 6.Sunshine Smoothies imports $5,000 of mangoes and buys $5,000 of strawberries from local farmers. It pays $1,000 in wages and $1,000 in rent. It sells $8,000 worth of smoothies to local consumers and ships $5,000 of frozen smoothies...

what is the rational for a country that promotes free trade to put tariffs on some...

what is the rational for a country that promotes free trade to put tariffs on some imported goods and services?

4. Suppose a capital abundant country, such as Italy, enters into free trade with a natural...

4. Suppose a capital abundant country, such as Italy, enters into free trade with a natural resource rich country, such as India. (i) Explain the form of trade, such as, who exports what and imports what, using the concept of comparative advantage in trade theory. Identify each country’s comparative advantage and disadvantage. (ii) Does trade create winners and losers within each country? Explain how.

Welfare effects of a tariff in a small country Suppose Burundi is open to free trade...

Welfare effects of a tariff in a small country Suppose Burundi is open to free trade in the world market for maize. Because of Burundi’s small size, the demand for and supply of maize in Burundi do not affect the world price. The following graph shows the domestic maize market in Burundi. The world price of maize is PWPW = $350 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus...

Suppose a capital abundant country, such as Italy, enters into free trade with a natural resource...

Suppose a capital abundant country, such as Italy, enters into free trade with a natural resource rich country, such as India. (i) Explain the form of trade, such as, who exports what and imports what, using the concept of comparative advantage in trade theory. Identify each country’s comparative advantage and disadvantage. (ii) Does trade create winners and losers within each country? Explain how.

Suppose that the country of VIRUS is currently operating in FREE TRADE arrangement with its closest...

Suppose that the country of VIRUS is currently operating in FREE TRADE arrangement with its closest neighbour, VACCINIA. VIRUS, however, is currently going through a difficult economic period, and its largest domestic producer of goods and services is demanding that VIRUS’S Government implement a TARIFF on all goods being imported from VACCINIA to protect the VIRUS’S domestic economy. (i) The Prime Minister of VIRUS has hired you as she is uncertain what to do. She has asked you to (1)...

Suppose there are 2 countries that have the following supply and demand equations in autarky Country...

Suppose there are 2 countries that have the following supply and demand equations in autarky Country A (I'VE SEEN THE OTHER ANSWERS, DO NOT COPY, OR YOU WILL GET THUMBS DOWN) Demand: Q = 800 - 2P Supply: Q = 2P - 200 Country B Demand: Q = 400 - 2P Supply: Q = 2P - 80 b)What would be the Free Trade Price? c) If the importing country imposes a tariff equal to $10 per unit, what would be...

Bell-land is a small country that currently practices autarky. In the market for transporters the supply...

Bell-land is a small country that currently practices autarky. In the market for transporters the supply and demand equations are given below Demand: P = 400 – 4Q Supply: P = 4Q What is the equilibrium price and quantity. Calculate consumer and producer surplus Now Bell-land decides to open trade. The world price for transporters is $100. Determine if Bell-land will import or export transporters. With trade what will be the new domestic quantity demanded? With trade...

Subjects