1. An economy that is closed to the outside world and has no government is made up of three industries (there is no trade within industries). Industry X extracts raw materials from mines and produces energy, it pays £28 billion to its workers and it sells £24 billion worth of output to industry Y, £12 billion worth to industry Z, and £12 billion worth direct to consumers (through its own energy supply network). Industry Y makes a range of manufactured goods and sells £56 billion worth to households and pays £28 billion in wages to its workers. Industry Z provides a range of services, selling £64 billion worth to consumers and paying its workers £40 billion in wages. There are no transactions between industries Y and Z and there are no other industries in the economy. What is the value of GDP? a) £100 billion. b) £92 billion. c) £120 billion. d) £132 billion. e) £172 billion.

What three factors will determine whether a nation has a higher or lower share of trade relative to its GDP?

At one point Canadas GDP was 1,800 billion and its exports were 542 billion. What was Canadas export ratio at this time?

6. Suppose Afghanistan and South Korea are countries that both produce coffee and tea which are sold for the same price. Below are various combinations the countries can produce using the same amount of capital and labour. Afghanistan South Korea Coffee Tea (Million (Million bags) bags) bags) 117 117 867 Tea (Million bags) Production and consumption before trade 67 (A) Consumption available after trade (B) 217 127 127 Table 1. A Table showing production in Afghanistan and South Korea Coffee (Million d. 1,017 a. Using the information above, draw a PPF (Production Possibilities Frontiers) curve for Afghanistan showing the production and consumption without trade and the production and consumption with trade (point A and B). b. Explain the concept of comparative advantage using your own words then based on the information above, calculate which country has a comparative advantage in coffee production and explain why you think the country has a comparative advantage in coffee production.…

The U.S. economy relies heavily on international trade. Choose two transactions at random that result from international trade; one where purchases are made from another country and one where the U.S. sends a product to another country. Identify the impact of each of these on imports, exports, net imports, and net exports at the time the transaction takes place.     For example, if you purchase a product online that is made in and shipped from Italy to you in the United States what is the effect on the U.S. economy in these four categories at the time of the transaction?    In addition, there has been a lot of news in recent years surrounding tariffs. Exactly what is a tariff and what is the impact of tariffs on international trade? Who pays the cost of tarffs?

4. What would some of the impacts on the U.S. economy if the world stopped trading goods and services?

Suppose the equation for the demand curve in a market is P=100-1.5QD, where Qp is the quantity demanded and P is the price. Also, suppose the equation for the supply curve in the same market is P=0.5Qs , where Qs is the quantity supplied. Suppose there is an external cost of $12 associated with the production of each unit of the good. What is the socially optimal quantity, and how much is the social cost at this quantity? P=$22; Q=44 P=$31; Q=46 P=$34; Q=44 P=$25; Q=50 O O O O

8. If a country has an absolute advantage for a specific good relative to a possible trading partner, it might be producing more of the good using resources than its trading partner. more imported more different the same

In December 2019, a bipartisan group of senators introduced a bill which would expand the authority of the United States Customs and Border Protection agency to seize counterfeit goods at the U.S. border that infringe on intellectual property rights. If passed, this legislation would prevent the importation of counterfeit products into the United States. The estimated global trade value of counterfeit products in 2019 was over $1 trillion. Source: Paul D. Ackerman, Gary A. Abelev, and Aimee N. Soucie, "Proposed Counterfeit Goods Seizure Act of 2019 Would Provide Design Patent Protection at the US Border," huntonretailindustryblog.com, December 18, 2019. If the Counterfeit Goods Seizure Act of 2019 does not become law, intellectual property rights do not receive the added protection from this act, and counterfeit goods continue to come across the border, which of the following would most likely occur in the United States? OA. More dollars would be spent on the development of new…

Jiz What are the effects on U.S. imports and exports when the U.S. experiences economic growth stronger than its major trading partners? Multiple Choice There will be no effect on US imports and exports. U.S. exports will increase more than U.S. imports. US imports will decrease, but U.S. exports will increase. Saved US imports will increase more than U.S. exports. Note: don't use chat bot.