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 After forming an RTA with country B, country A would import steel from:

In this course, exams start and are held at a specific time…

In this course, exams start and are held at a specific time for all students.  There is no window in which to take the exam.  If the exam states that it starts at 08:30.  Noting that this course uses a 24hour clock – after all there are 24 hours in a day – choose the correct option below.

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 engaged in free trade with the Foreign country. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Only exact answer accepted.

Information for questions 14-20 There are two countries, Hom…

Information for questions 14-20 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 has 100 units of labor, Foreign has 500 units of labor.   Home Foreign Good X 1 4 Good Y 3 24 Putting quantity of good X on the horizontal axis, and quantity of good Y on the vertical axis, calculate the vertical intercept of the Foreign Production Possibilities Curve. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Only exact answer accepted.