Information for questions 10-12 The world is made of three c…

Information for questions 10-12 The world is made of three countries, A, B, and C. There are no transportation costs among these countries, just (possibly) tariffs. Countries A and B are considering forming a Regional Trade Agreement (RTA). If they do so, then they will have no tariffs against each other’s goods, but will keep their tariffs against country C’s goods. The following table lists the costs of production per unit of steel in the three countries, and also the tariffs that A imposes on steel from country B and C before the RTA is formed.   Cost of production ($/unit of steel produced) A’s tariff ($/unit of steel imported) Country A 21   Country B 15 5 Country C 11 5 Before forming an RTA with country B, country A imports steel from:

Information for questions 13-19 There are two countries, Hom…

Information for questions 13-19 There are two countries, Home and Foreign. Labor is the only factor of production. There are two goods, X and Y. The following table shows the output of each good per hour of labor, in the two countries. Home Foreign Good X 10 8 Good Y 5 2 Calculate the relative price of good X with respect to good Y (that is, PX/PY) in the Home country, if the Home country is autarky. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Only exact answer accepted.