Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q1) If a country closes off to trade and prices remain unchanged. what does that mean? A. Autarky prices and free trade prices are the

image text in transcribedimage text in transcribed
Q1) If a country closes off to trade and prices remain unchanged. what does that mean? 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 g negatively correlated with free trade prices. Explain your answer in up to 200 words Q2) If a country closes off to trade and notices that the number of firms in an industg doubles in size, what economic theory would help us explain this phenomenon? A. mgr-Samuelson. B. Melitz. C. Ricardian. D. Cournot. Explain your answer in up to 200 words Q3) In the Pure Specic Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specic to C and Land (A) is specic to W. If the government imposes a tariff on the imports of lg 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. Explain your answer in up to 200 words (141$ 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 V=Vthen A. Both owners of K and owners ofA 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. Explain your answer in up to 200 words 0.5) A country imposing a tariff can benefit in terms of social welfare if A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. B. The tariff revenue exceeds the sum of production and consumption distortion loss. C. The consumer surplus loss is less than the producer surplus gain. D. The terms-oftrade benefit exceeds the consumer surplus loss. {1 mark) Explain your answer in up to

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

Step: 3

blur-text-image

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

Public Policies For Environmental Protection

Authors: Paul R Portney

1st Edition

1317310144, 9781317310143

More Books

Students also viewed these Economics questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago