can anyone answer and if possible explain why choose the answer. e.g. 1) D becau

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can anyone answer and if possible explain why choose the answer.

e.g. 1) D because.........

A) Surplus B) Comparative Advantage C) Tariff D) Absolute advantage 10. A country with a lot of good fertile A) Manufacturing B) Agriculture C) Technical goods D) All of the above land is likely to have a comparative advantage in: 11· Which of the following is the result of trade barriers? A) Trade barriers prevent a nation from reaping the benefits of specialization B) Trade C) Trade barriers f barriers push a country to adopt relatively inefficient production techniques orce consumers to pay higher prices for protected products than they would otherwise pay D) All of the above 12. If the exchange rate between the United States and Mexico changes from $1-8 pesos to S = 9 pesos, then, ceteris paribus, the price of American goods in Mexico A) will remain the same. B) will increase. C) could either increase or decrease. D) will decrease mputer manufacturer $1,000 to produce a personal computer. This manufacturer 13. It costs a co sells these computers abroad for $600. Th A) a negative tariff. B) export subsidy. C) dumping D) a trade-related economy of scale. is is an example of

Explanation / Answer

Answer 10 - A country with a lot of good fertile land will like to have comparative advantage in agriculture. Land is a factor of production. According to the factor endowment theorem by Heckscher-Ohlin, 'a country will specialize in the production of that good which uses abundant factor intensively'.

Option B is the correct answer.

Answer 11 - Trade barriers reduce the volume of trade so a nation cannot take benefits of specialization. Trade barrier does not ensure efficient production in countries which are involved in international trade. Consumers pay higher price when interest of producers are saved.

Option D is the correct answer.

Answer 12 - The exchange rate was between America and Mexico was $1 = 8 pesos. Now this exchange rate is changed to $1 = 9 pesos. Suppose there is an American good price equal to $1 in America. This good was being sold in 8 pesos in Mexico. Now the same is being sold in 9 pesos. Price has increased in the Mexico of an American good.

Option B is the correct answer.

Answer 13 - Computer manufacturer manufacture a personal computer in $1000. Manufacturer sells this personal computer in $600 in abroad. Cost of manufacturing a personal computer is more than price that it receives. This is an example of dumping. The manufacture sells his good in loss.

Option C is the correct answer.  

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