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FIND THE CORRECT ANSWER FOR EACH QUESTION, NOTE THAT THE SELECTED ANSWERS ARE ALREADY FALSE. f(31!). (Problem 5e). Before the North American Free Trade Agreement

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FIND THE CORRECT ANSWER FOR EACH QUESTION, NOTE THAT THE SELECTED ANSWERS ARE ALREADY FALSE.

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\f(31!). (Problem 5e). Before the North American Free Trade Agreement (NAFI'A) gradually eliminated import tariffs on goods, the autarky price of tomatoes in Mexico was below the world price and in the United States was above the world price. Similarly, the antarky price of poultry in Mexico was above the worid price and in the United States was below the world price. As a result of NAFFA, the United States now imports tomatoes from Mexico and the United States now exports poultry to Mexico. How would you expect the following groups to be affected? Mexican and U.S. producers of poultry. "'3'" Producer surplus increases in Mexico and decreases in the United States. "_- Producer surplus increases in Mexico and decreases in the United States. ' Producer surplus decreases in both Mexico and the United States. - Producer surplus decreases in Mexico and increases in the United States. \fall. If the United States removed the tariffs and quotas on sugar, in the U.S. market for sugar: consumer surplus would decrease. ' - producer surplus would decrease. - consumer surplus Iwould not change. "" total'surplus would decrease. 035. In a single year, Argentina can raise 100 tons of beef or produce 1,000 boxes of tulips. In the same growing season, Venezuela can raise SD tons of beef or produce 750 boxes of tulips. when the two countries begin trading beef for tulips, we expect the price of beef in Venezuela: ' to be 15 boxes of tulips. -'s to rise. - to fall. to remain at the autarky price. 93?. (Problem 15). As the United States has opened up to tlade, it has lost many of its low-skill manufacturing jobs, but it has gained jobs in highskill industries, such as the software I industry. Explain whEther the United States as a whole has been made better off by trade. "5' The United States is worse off because of trade because the gains to high-skill workers do not outweigh the losses to lowskill workers. - As a result of tlade, the United States is better off, even though it has not specialized in those goods in which it has a compalative advantage. ' As a result oftlade, the United States can now consume more of all goods than before, so overall the economy is better off.

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