Ignore Pens Marks

9) An import tariff will cause the relative supply for to and the relative demand for to and. A exports; increase; imports; decrease . imports; decrease; imports; decrease . C) exports; decrease; exports; increase D) exports; increase; exports; increase 10) Which of the following is INCORRECT? A) Expost-biased growth reduces a country's terms of trade and welfare. B) Relative supply of cloth to food decreases if the relative price of cloth to food increases. C) If the country is a small part of the world economy, its tariff will not have much effect on the terms of trade. * D) The terms of trade refer to the price of exports relative to the price of imports. 11) Which of the following is INCORRECT? A) A country's PPF determines its relative supply function. B) Poorer consumers gain relatively less, whereas richer consumers gain relatively more from trade. C) Gains from trade are unevenly distributed across consumers due to differing consumption patterns. D) Consumers with lower income spend relatively more of their income on food, whereas consumers with higher income spend relatively more on services