EXHIBIT CNIGERIAETHIOPIAGoodGoodGoodGood YX✗Y12006008010402040202040030060Considering the data in Exhibit C, which of the following terms of trade would bothcountries agree to?O 0.5X = IY3X=1Y4.5X = IY5X=1Y

to determine the term of trade, one should first find the rate at which good X is traded at in…

Answered: EXHIBIT C NIGERIA ETHIOPIA Good Good…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $35. Suppose that the world price of meekers is $21. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market. If Meekertown allows free trade, then it will meekers. Given current economic conditions in Meekertown, complete the following table by indicating whether each of the statements is true or false. Statement True False Meekertownian consumers were worse off without free trade than they are with it. Meekertownian producers were better off without free trade than they are with it. True or False: When a country is too small to affect the world price, allowing free trade will always decrease total surplus in that country, regardless of whether it imports or exports as a result of international trade. True False
The most frequent argument used to support trade barriers is that they O protect domestic jobs O undermines national defense O keep money circulating in the United States O is detrimental to infant industries
In the last 50 years, international trade has grown rapidly because of fewer trade barriers. slowly because of increasing transportation costs. slowly because of more government restrictions. rapidly because it is more fashionable to consume foreign goods. O neither more slowly nor more rapidly than in past years.
2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekles, a hypothetical good. Without international trade the domestic price of meekies is $21. Suppose that the world price of meekles is $33. Assume that if it were to enter the international market for meekies, Meekerton is too small to influence the world price. If Meekerton decides to participate in free trade, then it will Given current economic conditions in Meekerton, complete the following table by indicating whether each of the statements is true or false. False O meekies. Statement Meekertonian producers were better off without free trade than they are with it. Meekertonian consumers are better off under free trade than they were before. True O False True True or False: When a nation is too small to affect world prices, allowing free trade will have a non-negative effect on total surplus in that country, regardless of whether it imports or exports as a result of international…
4.
What is the net welfare gain from trade to the economy of country 1?
The following diagram shows the domestic demand and domestic supply in a market. In addition, assume that the world price in this market is $40 per unit. 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 8 ↑ Price 20 10 200 400 600 300 units of the good. Refer to Figure 9-22. With free trade, the country imports 600 units of the good. 900 units of the good. – 1,200 units of the good. 800 1000 1200 1400 1600 1800 2000 2200 Domestic Supply Domestic Demand 2400 Quantity
The US exports $10 billion worth of inorganic chemicals to Germany and imports inorganic chemicals from Germany for the same dollar amount. Japan imports $1 billion of garments from Indonesia, but does not export any to Indonesia. The measure of intra-industry trade between Germany and the US first, and between Japan and Indonesia second are respectively... a. 0.5 and 0.5 b. 1 and 0 c. -1 and 1 d. 0 and 1
"Analyze the impact of trade tariffs on small economies, particularly focusing on import- dependent sectors. Discuss how tariffs can affect local businesses, consumer prices, and trade relationships. Additionally, evaluate the potential for retaliatory measures by trading partners and the long- term consequences on global trade dynamics and economic diplomacy."
Suppose that one country (Country A) subsidizes its exports and the other country (Country B) imposes a "countervailing" tariff that offsets its effect, so that in the end relative prices in the second country are unchanged. What happens to the terms of trade? What about welfare in the two countries? O A. From Country A's perspective, world relative supply will increase and world relative demand will increase. This will improve its terms of trade. The countervailing tariff exacerbates this effect so Country A will definitely gain and Country B definitely loses. O B. From Country A's perspective, world relative supply will decrease and world relative demand will increase. This will improve its terms of trade. The countervailing tariff exacerbates this effect so Country A will definitely gain and Country B definitely loses. C. From Country A's perspective, world relative supply will decrease and world relative demand will increase. This will worsen its terms of trade. The countervailing…
Sometimes, excessive steps of a nation to protect domestic producers and employment can create a hostile trading environment. Some economists consider this type of protectionism creates more pain than gain. Please state an example of any personal impacts that you have experienced either due to free trade or trade wars in the recent past.
Most economists international trade because Select the correct answer below: oppose; it hurts domestic producers and special interest groups oppose; they believe that other countries engage in unfair competition through dumping and other predatory pricing O support; the gains from trade exceed the costs and can be redistributed to make everyone better off O support; it lowers prices for consumers and that is more significant than the cost of lost jobs in domestic production

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EXHIBIT C NIGERIA ETHIOPIA Good Good Good Good Y X ✗ Y 120 0 60 0 80 10 40 20 40 20 20 40 0 30 0 60 Considering the data in Exhibit C, which of the following terms of trade would both countries agree to? O 0.5X = IY 3X=1Y 4.5X = IY 5X=1Y