Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $22. Suppose that the world price of meekers is $21. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. If Meekertown allows free trade, then it will    meekers.   Given current economic conditions in Meekertown, complete the following table by indicating whether each of the statements is true or false. Statement True False Meekertownian consumers are worse off under free trade than they were before.       Meekertownian producers were worse off without free trade than they are with it.         True or False: When a country is too small to affect the world price, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade. True    False

Suppose the Heckscher-Ohlin model was modified to allow for technology differences to exist between two trading countries. How would this change the Heckscher-Ohlin model's findings on factor prices, goods prices, and the gains from trade for each factor/industry over time? Also, explain how you would determine which good a country would import and which good a country would export.

With respect to international trade, specialization means that Multiple Choice each country consumes what it produces. labor is exported or imported in much the same way as other products. most goods and services that are traded internationally are produced in only 1 or 2 nations. labor and other resources in a nation are used to produce the products and services for which they are best suited.

Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size, the demand for and supply of wheat in Kenya do not affect the world price. The following graph shows the domestic wheat market in Kenya. The world price of wheat is Pw = $250 per ton. Throughout this problem, assume that changes in trade policies in other nations do not significantly affect the world market for wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also assume that domestic supplies will satisfy domestic demand as much as possible before any exporting or importing takes place. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing domestic producer surplus (PS). (?) PRICE (Dollars per ton) 490 400 430 400 370 340 310 280 250 220…