Which of the following is no9 g/c ucyo3,iet a benefit of free trade?

  Identify which of the following are argum-,bywasi:i3d8 cua u jqob7c8of0o-. ents for trade protection.

I. Protection of infant industries.
II. National security.
III. Anti-dumping.
IV. Limiting choice for consumers.

  Identify which of the followin+wy8on)e cvw:tn/b6 aet 72z cg are arguments against trade protection.

I. Possible retaliation by trading partners.
II. Higher prices and inefficient allocation of resources.
III. Protection of domestic jobs.
IV. Increased export competitiveness.

  Imagine a hypothetica2olvicm saz p v57 5gzc6tpf-f/-1)cw.cq2wul scenario where the fictional country of Protopia decides to sell its exports at below-cost prices in the neighboring country out725pga-cv-w pc . z1zvci5co sfm/)6lw q2f f Econland.
In the scenario above, if Econland responded by imposing tariffs on imports from Protopia, the tariffs are

I. an anti-dumping measure.
II. a response to unfair competition.
III. used to protect domestic jobs.
IV. a step towards a more efficient allocation of resources.

  Which of the following adr j/s5,is) wjrguments supports the theory of comparative advantage?

  

	Cotton	Tractors
Cottonland	2000	1000
Tractorland	8000	7000

Calculate the opportunity cost of cotton in Cottonland and the opportunity cost of tractors in Tractorland.

	Opportunity cost of cotton in Cottonland	Opportunity cost of tractors in Tractorland
A.	0.5 tractors	0.9 cotton
B.	2 tractors	1.1 cotton
C.	0.5 tractors	1.1 cotton
D.	2 tractors	0.9 cotton

  
From the given diagram, calculate the import expenditure.

  
According to the diagram above, which of the following statements is not true?

  
According to the diagram above, which of the following statements is true?

I. Neither country has comparative advantage in the production of Good X
II. Country A has a lower opportunity cost for Good X than Country B
III. Country B has a lower opportunity cost for Good X than Country A

  
Using the tariff diagram above, calculate the change in domestic producer revenue as a result of imposing the tariff, the change in domestic consumer expenditure, the change in import expenditure, and the tariff revenue collected by the government.

	Change in domestic producer revenue	Change in domestic consumer expenditure	Change in import expenditure	Tariff revenue collected
A	-$225000	+$175000	-$50000	+$150000
B	+$225000	+$175000	-$50000	+$150000
C	+$225000	-$175000	+$50000	+$150000
D	-$225000	-$175000	+$50000	+$2000000

  
Using the diagram above, identify the domestic quantity supplied, the domestic quantity demanded, and the quantity of imports when a tariff is applied.

	Domestic quantity supplied	Domestic quantity demanded	Quantity of import
A.	125 000 units	300 000 units	150 000 units
B.	100 000 units	275 000 units	200 000 units
C.	125 000 units	275 000 units	150 000 units
D.	100 000 units	300 000 units	200 000 units

  
Using the diagram above, calculate the change in producer revenue after it engages in international trade.

  
Using the quota diagram above, calculate the change in foreign producer revenue after imposing the quota.

  
The above diagrams show the production possibility frontiers (PPFs) of Country A and Country B. Both countries use the same amount of resources to produce CDs and wine.

Which of the following statements are true?

  
Using the subsidy diagram above, identify which of the following statements is not true after granting the subsidy?

  
Using the labelled areas in the tariff diagram above, identify the post-tariff domestic producer surplus and domestic consumer surplus.

	Domestic producer surplus	Domestic consumer surplus
A	g	a+b
B	g	a+b+c+d+e+f
C	c+g	a+b+c+d+e+f
D	c+g	a+b

  
Using the diagram above, identify the true statements below.

I. The domestic quantity supplied increased from 100 000 to 150 000 units after the imposition of the quota
II. The quota is equal to 150 000 units
III. The domestic producer revenue increased from $400 000 to $900 000 after the imposition of the quota
IV. The domestic consumer expenditure increased from $1 200 000 to $1 350 000 after the imposition of the quota

  Which of the following are form6bun f9 n f25lmfim(*fs of trade protection?

I. Import tariffs
II. Import quotas
III. Austerity measures

  Which of the following will fall when protectionist tariffs are removed?

  
The above diagram depicts a market for a good in a closed economy. If the economy opens to international trade, and no protectionist measures are enacted, which of the following would most likely occur?

  
Calculate the change in import revenue before and after the imposition of the above tariff.

  
Calculate the correct values of domestic revenue which are consistent with the above diagram.

	Closed economy	With tariff	Free trade
A.	£10 000	£10 000	£0
B.	£0	£10 000	£10 000
C.	£5 000	£14 000	£30 000
D.	£30 000	£14 000	£5 000

  Which of the following would increase as a protective quof)ske qi1 s upx0/u3e*v3o9xtta is eliminated?

  
What is the net welfare loss after the quota is implemented?