Lecturа Reаd аbоut Linda, then indicate whether each statement is ciertо оr falso. Linda es de Ecuador, pero sus padres son españoles. Linda y sus hermanos asisten a la universidad en Quito. Linda es muy buena estudiante. Ella desea ser una doctora importante. Su hermano Carlos también estudia para ser doctor. Su hermano Fabián desea ser artista. Ellos viven lejos de la universidad. Por suerte (luckily), comparten un auto (car) grande. La universidad de Linda está en Guayaquil.
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. For the remainder of this group, ignore Country C, which will remain in autarky forever. Country A and Country B are engaged in free trade with each other; the world price ratio (PF/PC) is 1.0; flowers are the labor-intensive good and candy is the capital-intensive good. Enter Country A’s total production of Candy with trade. Enter a whole number only. Enter 0 if the answer cannot be obtained with the information given. Since this is a graphical question, approximate answers (within 25 of the exact answer) are accepted.
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. What minimal additional piece of information would you need to answer question 1? Note: We are looking for the minimal information. An answer that has unnecessary information (more than the minimal information) will be marked as incorrect.
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. Country C is also in autarky. Both flowers and candy are more expensive in Country C’s autarky than in Country A’s autarky, but we don’t know exactly by how much. Compared with Country C, we can say that Country A has comparative advantage in
Infоrmаtiоn fоr questions 18-25 The following grаph depicts the supply аnd demand curves for sugar in the US. The world price of sugar under free trade is PW. If the US imposes either a tariff or a quota, the price of sugar in the US goes up to P′, while the world price goes down to P′W. Areas are denoted by lower-case letters, points on the axes are capital letters. Under the tariff / quota, the US’s imports of sugar are equal to the length
Cоnsider the stаndаrd mоdel оf internаtional trade. If the ratio of the price of cloth divided by the price of food (PC /PF) increases in the international marketplace, then
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. What minimal additional piece of information would you need to answer question 3? Note: We are looking for the minimal information. An answer that has unnecessary information (more than the minimal information) will be marked as incorrect.
Infоrmаtiоn fоr questions 18-25 The following grаph depicts the supply аnd demand curves for sugar in the US. The world price of sugar under free trade is PW. If the US imposes either a tariff or a quota, the price of sugar in the US goes up to P′, while the world price goes down to P′W. Areas are denoted by lower-case letters, points on the axes are capital letters. Under free trade, the US’s imports of sugar are equal to the length
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. For the remainder of this group, ignore Country C, which will remain in autarky forever. Beginning with this question and until the end of this group: Country A and Country B are engaged in free trade with each other; the world price ratio (PF/PC) is 1.0; flowers are the labor-intensive good and candy is the capital-intensive good. In which good does Country A have comparative advantage in?
Infоrmаtiоn fоr questions 1-11 Note: for this question group, use аny informаtion only after it is given (the most important information is underlined). For example, in the beginning of the group the country is in autarky. Do not use any information given later, about the country when it is trading. Two goods are produced in the world: flowers and candy. The figure shows the Production Possibilities Frontier for Country A in the two goods. Two straight lines, of slope 0.45 and 1.0, are also shown, and both are tangent to the PPF. Finally, an indifference curve is shown. There are two other countries in the world: Country B, with which Country A can trade, but only in some later questions (see below); and Country C, which never trades with anyone. To begin, Country A is in autarky, and its autarky price of flowers is $4.5, its autarky price of candy is $10. For the remainder of this group, ignore Country C, which will remain in autarky forever. Country A and Country B are engaged in free trade with each other; the world price ratio (PF/PC) is 1.0; flowers are the labor-intensive good and candy is the capital-intensive good. Enter Country A’s total trade in flowers. Enter a whole number only. Enter a positive number if Country A exports flowers, and a negative number if it imports flowers. Enter 0 if the answer cannot be obtained with the information given. Since this is a graphical question, approximate answers (within 25 of the exact answer) are accepted.