(NOTESWAP) Old Final Lab Questions-1

(NOTESWAP) Old Final Lab Questions-1 - Old Final Lab...

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Old Final Lab Questions: 1. Suppose Ireland has the comparative advantage in producing potatoes and England has the comparative advantage in producing mutton. If the two countries specialize in their production and then trade, which will be true? a. Irish consumers will pay a higher price for their potatoes 2. In the absence of barriers to trade, the domestic price of a good that the country imports will be ______ the world price. a. Equal to 3. Suppose Hungary is an importer and price taker in the market for down pillows. Suppose further that the Hungarian government decides to impose a binding quota on these pillows. The domestic producer surplus will ______ and consumer surplus will _____ in Hungary as a result of the quota. a. Increase; decrease 4. The imposition of a tariff causes ______ in producer surplus for domestic firms and ______ in producer surplus for import-producing firms. a.
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This note was uploaded on 05/09/2011 for the course ECON 2000 taught by Professor Roussell during the Spring '06 term at LSU.

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(NOTESWAP) Old Final Lab Questions-1 - Old Final Lab...

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