What insights do welfare analysis (consumer surplus/producer surplus) offer into international trade? a. That trade increases the welfare of producers, so trade may make total surplus fall. Ob. That nations are better off NOT trading with each other, because lower world prices harm most nations' producers and consumers. Oc. That while trade increases total surplus, consumers or producers in a country may gain or lose, depending on world price. Od. That tariffs make a country better off and trade wars can definitely be won!

Use the chart to answer the following question. Reduce the number of quotas Growth of trade Reduce protective tariffs Increased number of exports Variety of goods and services What is the BEST title for the chart? O A. Arguments for Protectionism B. Benefits of Free Trade O C. Disadvantages of Free Trade O D. Advantages to Trade Barriers

The market for avocados in Santa Cruz has 5 local producers and 5 local "consumers" (each is actually a restaurant). Each producer can produce 1 avocado, and each consumer demands 1 avocado. The producers and consumers are: Table 1: Producer Cost |Amy's Farm $15 Ostrich Farm $6 Knott's Farm $14 Fambrini's Farm $9 JSM Organic Farms $10 Table 2: Willingness Consumer to pay Cafe Ivita $4 Avanti's $1 El Palomar $10 Olita's $9 Vim $5

a. Consider a closed economy (an autarky). The equilibrium price of computers in this autarky is equal to $1,000. Suppose that the world price of computers is equal to $800. Does this country have comparative advantage in producing computers? If this autarky opens up to international trade, will this country export or import computers? b. Show the consumer surplus, producer surplus, equilibrium price and quantity traded for the closed economy in part-a in the market for computers.

The world price of a ton of steel is $100. The price of a ton of steel in Mexico was $250 before opening the economy to trade. After Mexico opened the economy to trade, Mexico began O exporting steel and the price of steel in Mexico decreased to $100. O Importing steel and the price of steel in Mexico remained at $250. O importing steel and the price of steel in Mexico decreased to $100. O exporting steel and the price of a steel in Mexico remained at $250

You are watching the nightly news. A political candidate being interviewed says, "I'm for free trade, but it must be fair trade. If our foreign competitors will not raise their environmental regulations, reduce subsidiaries to their export industries, and lower tariffs on their imports of our goods, we should retaliate with tariffs and import quotas on there goes to show them that we won't be played for fools!" A) If a foreign country artificially lowers the cost of production for its producers with lax environmental regulations and direct subsidiaries and then exports the products to us, who gains and who loses in our country, producers or consumers? B) Continuing form part A above, does our country gain or lose? Why? C) If a foreign country subsidizes the production of a good exported to the United States, who bears the burden of their mistaken policy? D) What happens to our overall economic well-being if we restrict trade with a country that subsidizes its export industries?…

Which of the following statements is false? Question 7Answer a. If the United States imposes a tariff on Japanese car imports, the price of cars in the United States is likely to increase. b. If Japan imposes a quota on car exports to the United States, the price of cars in the United States is likely to increase. c. If the United States imposes a quota on Japanese car imports, the price of cars in the United States is likely to increase. d. If Japan imposes a subsidy on car exports to the United States, the price of cars in the United States is likely to increase.

3. Two areas, Europe and America, can produce only goods A and B, under constant costs as indicated below. What will be the result of free trade between the two areas? In Europe In America 1 unit of good A 2 hours of labor 3 hours of labor 1 unit of good B 4 hours of labor 5 hours of labor a. Europe will export A and B to America. b. Europe will import A and export B. c. Europe will import B and export A. d. Europe will import A and B from America. e. No trade will take place.

↳ A Click Submit to complete this assessment. Question 33 What insights do welfare analysis (consumer surplus/producer surplus) offer into international trade? O a. That trade increases the welfare of producers, so trade may make total surplus fall. O b. That tariffs make a country better off and trade wars can definitely be won! Oc. That nations are better off NOT trading with each other, because lower world prices harm most nations' producers and consumers. Od. That while trade increases total surplus, consumers or producers in a country may gain or lose, depending on world price. A Click Submit to complete this assessment. tab caps lock shift fn 1 Q 2 A W Z I 3 S E X S D R C F T V G H B J N K

Answer th following: If Nation 2 is to enter trade. In what good will it specialize? Why? If Nation 2 is to specialize in the good of its comparative advantage, how much good X and good Y will Nation 2 produce? Suppose after specialization, Nation 2 exports 100 units of the good of its comparative advantage [your answer in 1], how much of X and Y will it consumer after trade Will Nation 2 enjoy welfare gains from trade? Provide evidence