Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, could you help me answer these two multiple-choice questions, explain the answer, and using a diagram, please? SECTION A Answer each question and explain

Hi, could you help me answer these two multiple-choice questions, explain the answer, and using a diagram, please?

image text in transcribed
SECTION A Answer each question and explain as per the instructions at the bottom of each question. QUESTION A.1 Ozland has closed itself off to international trade. Dzland 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. 0. 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 answerMand using a diagram (4 marks) QUESTION A.2 When Ozland closes off to trade, it notices that the number of firms in an industry doubles in size. What economic theory would help us explain this phenomenon? A. StolperSamuelson. B. Melitz. C. Ricardian. D. Ccurnot. (1 mark) Explain your answer Mend using a diagram (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rediscovering Sustainability Economics Of The Finite Earth

Authors: ARG Heesterman

1st Edition

1317069846, 9781317069843

More Books

Students also viewed these Economics questions