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 We have seen in class that if two countries trade with each other, total world production and consumption of at least one of the goods (and most likely of both goods) goes up, relative to the sum of the autarky values. Which best expresses the reason for that increase?

Information for questions 20-24 The figure below depicts th…

Information for questions 20-24 The figure below depicts the production possibilities curve (PPC) of a country. It also depicts the consumption possibilities curve (CPC) when the country is engaged in trade with one other country. Point C is this country’s consumption when that trade occurs. Calculate the opportunity cost of production of good x in this country. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Since this is a graphical question, approximate answers (within 0.2 of the exact answer) are accepted.

As a nation opens to trade (goes from autarky to free trade)…

As a nation opens to trade (goes from autarky to free trade), the relative price of the good it exports will ____ and the relative price of the good it imports will ______ . (Hint: to fix ideas you may use the figure from the previous group of questions, and look at what happens to that country’s relative prices.)