Suppose that the supply curve of an industry in an developing country is S0 as shown, but that by producing 10 units for 2 years, producers would be able to learn to become more efficient and their costs would drop, at the end of that two years, by $5 per unit. Their supply curve would therefore become the one shown as S1 thereafter. The world price is $5. Use the numbered gridto draw figure to answer the following question. a. If no policy is used at all, what will be the country's production and consumption of the good

1. According to the reading by Ronald Bailey, what do immigrants have to do in order

to benefit from a country's "intangible capital"? 2) According to the Infant Industry Argument

3) Developing countries sometimes object that free trade will lead them to specialize in

primary products. They view this as undesirable because?

4) Developing countries stand to gain from international trade because?

5) Which of the following is not one of the reasons that increased exports are thought to

increase a country's GDP?

a. Exporting firms have an incentive to learn and adopt best practice technologies.

b. An increase in demand for a country's exports constitutes an increase in

aggregate demand.

c. The revenue from exports adds to a country's international reserves of foreign

exchange.

d. Exporting firms face larger markets and can take advantage of economies of

scale.

e. Exports provide the means of paying for imports of capital goods.

6) The experts of the Copenhagen Consensus 2008 Project were asked how they would

allocate $75 billion on projects to aid developing countries. How much of that did

they choose to spend on completing the Doha Development Agenda?

7) According to the Food and Agriculture Organization (FAO) of the United Nations,

cotton farmers in West Africa are hurt by competition with US cotton farmers

because

8)