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 Home has Absolute Advantage in:

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 Which country has comparative advantage in good X?

Cold War was the prolonged period of tension between the Uni…

Cold War was the prolonged period of tension between the United States and the Soviet Union, based on ideological conflicts and competition for military, economic, social, and technological superiority, and marked by surveillance and espionage, political assassinations, an arms race, attempts to secure alliances with developing nations and proxy wars

Information for questions 10-13 The world is made of five co…

Information for questions 10-13 The world is made of five countries, A, B, C, D and E. 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 countries C, D, and E. The following table lists the costs of production per barrel of oil in the five countries. Also shown are country A’s tariffs imposed on imports of oil from other countries, before and after any RTA is formed.   Cost of production ($/barrel of oil) A’s tariff ($/barrel of oil) before RTA A’s tariff ($/barrel of oil) after RTA Country A 52.50 — — Country B 36.00 5.50 0 Country C 30.50 5.50 5.50 Country D 31.10 4.90 4.90 Country E 35.30 4.90 4.90 Before forming an RTA with country B, country A would import oil 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 Putting quantity of good X on the horizontal axis, and quantity of good Y on the vertical axis, which of the following curves has the largest slope (in absolute value)?

Information for questions 10-13 The world is made of five co…

Information for questions 10-13 The world is made of five countries, A, B, C, D and E. 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 countries C, D, and E. The following table lists the costs of production per barrel of oil in the five countries. Also shown are country A’s tariffs imposed on imports of oil from other countries, before and after any RTA is formed.   Cost of production ($/barrel of oil) A’s tariff ($/barrel of oil) before RTA A’s tariff ($/barrel of oil) after RTA Country A 52.50 — — Country B 36.00 5.50 0 Country C 30.50 5.50 5.50 Country D 31.10 4.90 4.90 Country E 35.30 4.90 4.90 Before forming an RTA, in order to conform with the “most favored nation” rule, country A should lower its tariffs on imports from: