Question

7. Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that in the production of textiles, a. Vietnam has a comparative advantage over other countries and Vietnam will import textiles. b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles. c. other countries have a comparative advantage over Vietnam and Vietnam will import textiles d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles. 8. Which of the following would affect the GDP for the U.S.? a. The purchase of tutoring services from a tutor who holds a foreign citizenship but resides within the U.S. b. The purchase of a new edition of a foreign textbook that was produced in a different country. c. The purchase of ink and paper supplies by a textbook company for the production of new textbooks not produced yet. d. The purchase of a used textbook from a friend who took the same class last year. Figure 1 The above figure describes the Chinese Market for pencil sharpeners. 9. Refer to Figure 1. With no international trade a. the equilibrium price is $12 and the equilibrium quantity is 300. b. the equilibrium price is $16 and the equilibrium quantity is 200 c. the equilibrium price is $16 and the equilibrium quantity is 300 d. the equilibrium price is $16 and the equilibrium quantity is 450.

Answer 1

s ton B Vietnam has a Cupractive advaucluges Over ofte (buntutes and Vietnam tegell export texitter in correct option. Because Vietnam Price of textiles is low than the would price which mean Vietnam ean sell the products world wide and having the Companative advantage gel due to low price. Because Bit of hon B. The purchase of a new edition of a 1. foreign text book that was produced in a different countries. - n correct option GDP = n Kee value of Goods and sevices within the countries GNP = GDP + NFI => [GNP_N FT = GAP Here Foreign foxt book effect GNP which howing of impact on GDP also Ophion Heo equilibriem price is $12 and hes Equilibriens - Quanhly is 300 is correct option © Becaune an at p = $12, Hal Quanhly - demanded le marrel clear the Quantly supplied