Price (dollars per pair) 110- 100- World price Before the 1980s, China did not t

Question

Price (dollars per pair) 110- 100- World price Before the 1980s, China did not trade internationally. It was self-sufficient Then China began to trade internationally in, among other items, coal and shoes. The world price of coal was less than China's domestic price and the world price of shoes was higher than its domestic price 1. China has a comparative advantage in producing R. China shoes O A. shoes imports OB. shoes, exports oc. shoes and coal; imports OD. coal, imports O E. coal; exports 2. In China, shoe _lose and shoe Lgain from international trade in shoes. O A. producers, consumers OB. consumers, producers 8 8 8 8 2 4 8 Do :5 3 4 5 6 7 8 9 10 11 Quantity (billions of pairs per year) 3. China from this trade in shoes. O A. gains OB. does not gain 4. The graph shows the domestic demand for and domestic supply of shoes in China and the world price of a pair of shoes. With international trade in shoes, China's producers consumers L and China's

Explanation / Answer

1) The answer is B -) SHoes ; export. because china has a compatative advanatage in producing shoes thats why domestich price is less than world market price.

2)The answer is B ) Consumer ; producer.

because with the international trade, china consumer faces a decresae in supply and thus increase in price and consumer suplus will loose.

3) The answer is B -) gains .

4) The answer is D-) Gain area B+D , Lose area B

5) The answer is A -) Area D.

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