US and South Korea reached formal agreement on a plan to lift S. Korea’s long ban on US beef exports. What type of policy was S. Korea’s banning of US beef and why (other than fear of contaminated beef – mad cow disease) did S. Korea do this? Use offer-curve analysis to discuss the effects of this policy change. How does your answer change with your assumption as to whether S. Korea is a large or small country?

Consider the domestic steel market. Under autarky, the domestic equilibrium is such that 8 million pounds of steel are produced and sold at a price of $12 per pound. International producers, generally, are able to produce at a lower cost than domestic producers. Under an open trade policy, the world price of $6 enters the domestic market as an exogenous variable. For the questions below, assume that the domestic market is beginning in the equilibrium that exists under an open trade policy and consider the impact of a $3 per pound tariff on imported steel. What is the gain in producer surplus from the tariff? $ million. (round your answer to two decimal palces) What import quota, Q, would produce the same gain in producer surplus as the tariff? Q million pounds (enter your response as a whole number). million. (round your What is the deadweight loss using a quota? $ answer to two decimal places and enter it as a positive number) Price/pound 30- 27- 24- 21- 18- 15- 12- 9- 6- 3- 0+ 0 B F…

The U.S. can produce 100 pounds of beef or 10 cars; in contrast Germany can produce 40 pounds of beef or 30 cars. Which country has the absolute advantage in beef?  Which country has the absolute advantage in producing cars? What is the opportunity cost of producing one pound of beef in the U.S. What is the opportunity cost of producing one pound of beef in Germany?

[India is the world’s largest consumer of sugar. Assume the world price for sugar is $750 per ton.] [Assume India currently has a tariff of $50 per ton on sugar and imports 7 million tons of sugar. Show this situation in a graph. Label the quantity demanded and the quantity supplied domestically and imports clearly on a graph. Explain your graph in 3-4 sentences. How to draw the graph?

Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. What will exports of planes now be (round to one significant digit).   Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. Given exports, about how much will United States producers of airplanes wind up paying in tariffs?

Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable. Price Qdd Qsd $5.00 200 400 4.00 250 350 300 250 200 3.00 300 2.00 350 1.00 400 If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will Multiple Choice O neither export nor import the product. export some units of the product. import some units of the product. not produce the product.