If the world price of rice is lower than the domestic rice price before trade, Korea...
If the world price of rice is lower than the domestic rice price before trade, Korea will be an importer of rice when trade is permitted. Due to trade, domestic producers of rice in Korea are worse off, and domestic consumers of rice in Korea are better off. Trade raises the economic well-being of the nation as a whole because the gains of consumers exceed the losses of producers. Is this true or false? Please indicate reason to your answer.
Homework Answers
Answer - Yes , the given statement is correct.
When the trade takes places , the consumer surplus rises due to lower price that they have to pay. The producer surplus fall because their demand decreases. But , the increase in the consumer surplus is more , and the decrease in producer sruplus is less. Hence , the net effect is the total addition in the surplus in economy. Hence whole economy benefits from trade.
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If the world price of rice is lower than the domestic rice price
before trade, Korea...
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QUESTION 16 If the world price of cotton is less that the price that would occur...
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Back to Assignment Attempts: 2. Winners and losers from free trade Consider the market for meekers...
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1) When trade in coffee is allowed, producer surplus in Guatemala a. increases by the area B + D. b. increasesbythearea...
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2) When trade is allowed,
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c. both Guatemalan producers and consumers of coffee...
No need to explain in detail. I just want to check my answer. But please provide...
No need to explain in detail. I just want to check my answer.
But please provide me a formula.
1. The principle of comparative advantage asserts that a. not all countries can benefit from trade with other countries. b. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. c. countries can become better off by exporting goods, but they cannot become better off by importing goods. d....
Consider the market for meekers in the imaginary economy of Meekertown.
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inmäiginary economy of Meekertown. In the absence of international trade, the domestic price of meeker Consider the market for meekers in the intaginary 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 t international market. If Meekertown allows free trade, then it will meekers. Given current economic conditions...
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is 19 wrong? need help with 20
O lower domestic consumption of the good than under free trade lower domestic production of the good than under free trade QUESTION 19 When the government increases tariffs O production switches from low-cost foreign producers to high-cost domestic producers, wasting resources domestic producers buy more of the good, increasing the gains from trade domestic producers produce more output, increasing the gains from trade deadweight losses are eliminated because foreign producers sell below their...
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Guatemala
a. increases by the area B + D.
b. increasesbytheareaB+D+G.
c. decreases by the area C + F.
d. decreases by the area G.
2) When trade is allowed,
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b. Guatemalan consumers of coffee become better off and
Guatemalan producers of coffee become worse off.
c. both Guatemalan producers and consumers of coffee...
No need to explain in detail. I just want to check my answer.
But please provide me a formula.
1. The principle of comparative advantage asserts that a. not all countries can benefit from trade with other countries. b. the world price of a good will prevail in all countries, regardless of whether those countries allow international trade in that good. c. countries can become better off by exporting goods, but they cannot become better off by importing goods. d....
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