Trade between two countries can benefit both countries if O each country exports that good in which it has a comparative advantage; O each country has a more elastic demand for the imported goods: O each country produces a wide range of goods for export. O each country enjoys superior terms of trade;
Q: Part F. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the…
A: The measure that depicts the exchange of goods and services among individuals or entities in…
Q: When a smaller country with fewer resources specializes in the production of a good in which it has…
A: When a country produces at a lower opportunity cost in comparison to others, the country is known to…
Q: Which of the following restrictions on international trade sets a maximum allowable amount of a…
A: There are many trade and nontrade barriers. A Tariff is a type of trade restriction imposed on the…
Q: The following production possibilities schedule shows the quantities of wheat and rice that can be…
A: Here, the production possibility schedule of India and Canada is given anda country should export…
Q: 1. Assume two countries, the U.S (US) and Japan (J), have one good: cars. The demand (d) and supply…
A: Without trade, at the equilibrium, the demand and supply of cars in both countries Japan and the…
Q: Country X and Country Y are trading partners. Both countries grow wheat and both countries produce…
A: Given that:- Country X and Country Y are trading partners and both these countries grow wheat and…
Q: There is more international trade in clothing than in fresh bread. This is likely because O A) No…
A: The reason for more international trade in clothing than in fresh bread is because that shipping…
Q: The figure shows the domestic supply and demand of a product in the United States. Suppose the world…
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Q: 17. When a large country imposes an import tariff on good X O a. Domestic production of good X…
A: When quantity demanded exceeds quantity supplied the country will import the good because it has the…
Q: Question ; Check all true statements below. Select one : O. Export tariffs hurt consumers O. Import…
A: Export Tariff is the Tariff that is imposed on the Exporter of the country when they are export…
Q: If two nations have the same endowments of factors, they can engage in international trade O 1)…
A: Factor endowment is the amount of factors of production that a country possesses. Labor and capital…
Q: A tariff is a tax imposed on good. O a) an imported O b) the most popular Oc) a luxury O d) d) an…
A: Tax means the source of revenue for the government.
Q: 1. Assume two countries, the U.S (US) and Japan (J), have one good: cars. Thedemand (d) and supply…
A: Note:- Dear learner you have posted a question with multiple sub parts, you have asked for the part…
Q: 2. Suppose the supply and demand curves for wheat are given by: S = 2P – 1 D = 5- P where P is the…
A: A tariff is a tax levied by one country on the goods and services imported from another country. It…
Q: b. Why is an agreement to export only 100,000 cars to North America better for the Japanese…
A: A quota is a government-imposed trade restriction that restricts the number or monetary worth of…
Q: 1. What is the basis for trade? O A. Comparative advantage. O B. Absolute advantage. O C. Available…
A: Trade is a fundamental economic idea including the purchasing and selling of labor and products,…
Q: Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 25 Sd- 20 15 P* a IP 10 Dd 0 3 6 9 12 15 18 21 24 18. If the free trade price is IP and this country…
A: At the initial level without any tariff, the price was IP and it changes to P* when there is an…
Q: Suppose further that consumers in both countries have identical Leontief preferences, utility…
A: Units of Labour Required Home Foreign Fish 6 2 Edamame 6 3
Q: . Country A has a tariff on imported TVs. But, the new government of Country A decided to charge…
A: We find that country A has made a trade union with country B.
Q: Which of the following statements about foreign trade is correct? Choose an answer: O 1. A good is…
A: Absolute advantage:- Absolute advantage refers to an economy's ability to create more total…
Q: How can specialization result in greater voluntary exchange between countries? O A. Specialization…
A: Specialization refers to a country's propensity to specialise in such items that it trades for other…
Q: Which of the following statements is true about comparative advantage? O.a) Comparative advantage…
A: Comparative advantage refers to the ability of a nation, firm, or person to produce goods and…
Q: Suppose that, from an initial equilibrium position in the offer curve diagram, country I imposes a…
A:
Q: ave atn) in the production of seafood. O a) comparative advantage O b) negative incentive Oc)…
A: The answer is - a) comparative advantage coastal regions are stronger commercial fishing economics…
Q: An import tariff on a specific good means consumer surplus and producer surplus O a. Increases;…
A: Import tariffs lead to rise in the price of imported goods. Thus, the demand for the domestically…
Q: The basic difference between macroeconomics and microeconomics is that: O A. microeconomics is…
A: Microeconomics is considered to be the study of households, individuals and firms and their role in…
Q: Consider that the market for ethanol in Brazil is described by the following equations: Demand: P =…
A: At the world price , the amount of imports or exports are determined by the difference between…
Q: The Italian price control for masks affected buyers (select all the apply) O in a positive way…
A: When analyzing the given information, it can be said that government restricted the imports of mask…
Q: The president of the United States argues that the United States should threaten to impose a tariff…
A: Tariff is nothing but the tax on imports. United States in imposing tariff on Chinese goods so that…
Q: A possible reason a nation might impose a restrictive policy such as a tariff is to O a) increase…
A: Imports refer to the incoming of foreign goods into the domestic market.
Q: Suppose Italy has the comparative advantage in producing wine and Germany has the comparative…
A: When two closed economies decide to open up and make international trade, their is an opportunity to…
Q: The following production possibilities schedule shows the quantities of soybeans and oil that can be…
A: The pattern of trade is determined by comparative advantage of production. If Mexico gains from…
Q: Two countries decide to engage in specialization and exchange. For both countries to benefit from…
A: Suppose there are two countries, i.e., A and B. And they are producing two goods. i.e., X and Y…
Q: Domestic producers of tires send a lobbyist to the U.S. government to request that the government…
A: - International Trade is the trade of services, capital, and goods across the world. It considers…
Q: In 1932, U.S. manufacturers, which used to enjoy steady relationships with their foreign…
A: Answer- "Thank you for submitting the questions. But,we are authorized to solve one question at a…
Q: a. Are comparative-cost conditions such that the two countries should specialize? If so, what…
A:
Q: Trade costs affect the following EXCEPT O how a firm responds to competition in a market. O how a…
A: Trade cost refers to the additional cost of transferring goods from seller's hand to a buyer's hand,…
Q: Suppose that the opportunity cost ratio for apples and oranges is 1AE =30 in Germany but 10= 2A in…
A: Comparative advantage: The theory of Comparative advantage states that a country has benefits not…
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A: Imposition of tariff on imported textiles will increase its price in domestic market. This rise in…
Q: According to the theory of comparative advantage, a country exports goods when it can produce those…
A: "In international economics, comparative advantage theory reflects a nation's ability to produce…
Q: Suppose a small country initially imports 100 units of a good. Then it imposes a tariff of $5 that…
A: A net welfare gain refers to the impact of a government policy, or a decision by firms, on total…
Q: Based on Figure 48, choose the correct statement. Assume that Nation 2 imposes a quota (30X) on…
A: The involvement of a nation in the more open international trade increases the well-being of the…
Q: In the international trade, two countries gain if: a) Price ratios are different b) Cost ratios are…
A: Cost is the total money used by the producer to manufacture and sell the products and services in…
Q: The imposition of a tariff on a product is least likely to result in a(n) O increase in the price of…
A:
Q: 16 of 38 Suppose that the domestic demand for sugar is given by P=27-2Qd and the domestic supply is…
A: Answer: B (From 5 units to 2.5 units) Explanation: Import = Domestic demand - Domestic supply At the…
Q: The figure shows the U.S. market for wheat. With international trade, the United States exports…
A:
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- Assume a perfectly competitive market and the exporting country is small. Using a demand and supply diagram, show the impact of increasing standards on a low-income exporter of toys. Show the tariffs impact. Is the effect on toy prices the same or different? Why is a standards policy preferred to tariffs?Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 – 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY – 40. A) Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of Oeconomic efficiency. O public welfare maximization. marginal comparative advantage. O monetary construction of values.
- Part F. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. Part G. Assume that instead of a specific tariff, an import quota will be used on good Y. What is the amount of the quota that will have identical effects (in terms of amount of good Y imports and the domestic price of good Y) as the specific tariff of $15? Explain your reasoning. Part H. Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.1) Assume that the domestic supply and demand for a good are given by the following equations. Q = 500 – 20 P Q = 80 + 10 P a) If the world price is $10 what is the free trade level of imports? Calculate the net welfare effects of a quota of 60 units. (Quota rent goes to foreign suppliers ( VERS) . Use also graph to show the effects of this quota. b) If %30 tariff imposed on the world price(10$) , what will be net welfare effects? Compare this welfare effect with the one in (a) and comment. Use a new graph to show the effects.a) Suppose the two countries engage in international trade, and that the international relativeprice of good (T) is 3 tons of good (D). Can there be mutually beneficial international tradebetween the two countries? If so, which are the patterns of comparative advantage, ofproduction and consumption, of exports and imports between the two countries? What arethe gains from trade for each country? b)
- Which of the following statements is true about comparative advantage? O.a) Comparative advantage is interesting theoretically, but it is not relevant when evaluating real-world economic conditions.O.b) Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation.O.c) Comparative advantage exists whenever one person, firm, or nation can do something at higher opportunity costs than some other individual, firm, or nation.O.d) Only technologically advanced economies can have a comparative advantage in the production of a good or service.A quota rent is: O levied as a fixed charge for each unit of a good imported. O a quota on trade imposed by the exporting country. O the extra profit producers make when supply is artificially limited by an import quota. O levied as a proportion of the value of the imported good. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 – 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY – 40. Free Trade Price: $70 30 Units of Good Y are traded under free trade If a tariff of $15 is imposed by the home country on each unit of good Y imported, Foreign exporters receive a price of $60. If a tariff of $15 is imposed by the home country on each unit of Good Y imported, Home consumers pay $75 If a tariff of $15 is imposed by the home country the number of goods traded is 20. a) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. b) Assume that instead of a specific tariff, an import quota will be used on good Y. What is the amount of the quota that will have identical effects (in terms of amount of good Y imports and the…
- Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 – 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY – 40. Free Trade Price: $70 30 Units of Good Y are traded under free trade If a tariff of $15 is imposed by the home country on each unit of good Y imported, foreign exporters receive a price of $85. a) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good Y that Home consumers pay? Show your work. b) If home country imposes a specific tariff of $15 per unit of good Y imported, how many units of good Y are traded now? Show your work. c) If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. d) Assume that instead of a specific tariff, an import quota will be used on good Y. What is the…3. Suppose that, from an initial equilibrium position in the offer curve diagram, country I imposes a tariff on country II’s export good at the same time that consumers in country II change their tastes toward wanting more of II’s export good. Illustrate and explain the impact of these two simultaneous events on country I’s volume and terms of trade.home cheese alc=1hr/kg wine alw=2hrs/gallon foreign cheese alc*=6hrs/kg wine alw*=3hrs/gallon Calculate the Home country's opportunity cost of producing cheese. In which product does the Home (Foreign* ) country has an absolute advantage? Show in which product does the Home (Foreign* ) country has comparative advantage? Calculate the relative supply (RS) With trade, what is the equilibrium range that the relative price of cheese to wine will settle? Supposing that the intersection of RS and RD occurs at PC /PW = 1, what is the implication?
