Question

Please answer 18,19,24,and 25 Correctly

QUESTION 18 Use the data in the table below to answer the following question(s): Table 3.1 Output per Hour Worked United States Mexico Computers Shoes 6 pairs 3 pairs Based on Table 3.1, the pre-trade relative price of a computer in Mexico is three pairs of shoes. one-third pair of shoes. one-half pair of shoes. one pair of shoes. QUESTION 19 Which of the following is FALSE? O Capital flows today are larger mainly because economies are larger. There are important qualitative differences between capital flows today and in the past. The last two decades are the first time in history that a nation has borrowed more than 10 percent of its GDP. Today most international financial transactions involve buying and selling assets denominated in foreign currencies.

Answer 1

18 Option A

A relative price is the price of one good compared to another. As we can see relative price of 1 computer in Mexico is equal to 3 pair of shoes.

19.Option C

Truman led to the largest increase in public debt. Public debt rose over 100% of GDP to pay for the mobilization before and during the war. Public debt was $251.43 billion or 112% of GDP at the conclusion of the war in 1945 and was $260 billion in 1950.

24 False

Due to Globalisation there is a widespread increase in free trade agreements and bilateral investment treaties. Bilateral investment Treaties (BITs) are agreements between two Countries (States) for the reciprocal promotion and protection of investments in each other's territories by individuals and companies situated in either State.

25 Option B

Tariffs protect domestic industry by increasing the price of foreign goods. Government procurement practices and health and safety regulations can protect domestic industry from foreign competition. Government may restrict the import of certain products which it may consider to be harmful for health of consumers.