Use the Table below to answer Question 7: Imports Еxports $1,876,000 Capital per million dollars Labor (person-years) per million dollars Capital-labor ratio (dollars per worker) Average years of education per worker Proportion of engineers and scientists in work force $2,132,000 119 131 $17,916 $14,321 9.9 10.1 0.0189 0.0255 Source: Robert Baldwin, “Determinants of the Commodity Structure of U.S. Trade," American Economic Review 61 (March 1971), pp. 126–145. 7. The above table illustrates factor content of U.S. exports and imports for 1962. Which of the following statement is true according to the above table? A. There is evidence supporting the Heckscher-Ohlin model. B. It shows that U.S. exports were more capital intensive than its imports. C. It shows that U.S. is a capital abundant country. D. It shows that the U.S. produces outside its PPF. E. None of the above is true.

(i) Canada, and (ii) India? Explain each of your responses. 3. In 2010, the economy of the Utopia exported goods worth $232 billion and services worth another $87 billion. It imported goods worth $225 billion and services worth $56 billion. Receipts of income from abroad were $110 billion while income payments going abroad were $91 billion. Government transfers from the Utopia to the rest of the world were $23 billion, while various Utopia government agencies received payments of $16 billion from the rest of the world. a) Calculate Utopia's merchandise trade balance for 2010. b) Calculate the current account balance for 2010. c) Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for Utopia in 2010.| Note: If you want to receive partial credit, please show your work. 1 O Focus A atv N MacBook Pro DII DD 000 F3 F4 F5 F6 F7 F8 F9 F10 $ * 4 5 6. 7 8. T Y U G J K * CO

It is often asserted that the United States no longer manufactures anything, and that instead it imports manufactured goods from countries like China. Critically evaluate both sides of this argument.

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security. True False