Any price above $3.00 Any price below $1.00 Any price below $3.00 Any price abov

Question

Any price above $3.00

Any price below $1.00

Any price below $3.00

Any price above $1.00

34.

800 units and domestic producers would supply 1,400

800 units and domestic producers would supply 2,200

400 units and domestic producers would supply 2,200

400 units and domestic producers would supply 1,400

35.

Frederic Bastiat's satire clearly illustrates that:

French consumers would benefit from a tariff on U.S. candles

French candle makers would benefit from government restrictions on trade

The arguments in favor of protectionism are sometimes well-founded

The arguments in favor of trade protectionism can sometimes be ridiculous

36.

The World Trade Organization is the successor to the:

World Customs Organization

General Agreement on Tariffs and Trade (GATT)

United Nations Commission on Trade Law (UNCTL)

United Nations Conference on Trade and Development (UNCTAD)

Explanation / Answer

33. If Country X opens itself up to international trade, at Any price above $3.00 , will it begin exporting some units of the product. Because at any price above $3.00, quantity demanded is less than quantity supplied.

34. If the world price for this product were $6, then Econland would import 800 units and domestic producers would supply 1,400. This is because at price $6, quantity demanded domestically is 2,200 and quantity supplied by the domestic suppliers is 1,400. So, they will import (2200 - 1400) = 800 units to match the domestic demand.

35. Frederic Bastiat's satire clearly illustrates that the arguments in favor of trade protectionism can sometimes be ridiculous.

36. The World Trade Organization is the successor to the General Agreement on Tariffs and Trade (GATT).

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