Information for questions 14-18 The world is made of two countries, La La Land, and Liverpond. Labor is the only factor of production. La La Land has 100 hours of labor available to be employed, while Liverpond has 200 hours of labor available to be employed. There are two goods, songs and movies. The following table shows the output of each good per hour of labor, in the two countries.   La La Land Liverpond Songs 10 4 Movies 20 5 Calculate the opportunity cost of songs (in terms of movies given up per additional song produced) in La La Land. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Only exact answer accepted.

Information for questions 10-13 The world is made of five countries, A, B, C, D and E. There are no transportation costs among these countries, just (possibly) tariffs. Countries A and B are considering forming a Regional Trade Agreement (RTA). If they do so, then they will have no tariffs against each other’s goods, but will keep their tariffs against countries C, D, and E. The following table lists the costs of production per automobile in the five countries. Also shown are country A’s tariffs imposed on imports of automobiles from other countries, before and after any RTA is formed.   Cost of production (thousands of $/car) A’s tariff (thousands of $/car) before RTA A’s tariff (thousands of $/car) after RTA Country A 22 — — Country B 15 5 0 Country C 10 5 5 Country D 11 4 4 Country E 18 4 4 Before forming an RTA with country B, country A would import automobiles from:

Which of the following is an example of an institution whose primary concerns are global stability and helping countries facing crises?

Information for questions 21-25 The figure below depicts the production possibilities curve (PPC) for the U.S. and Canada, two countries that can produce cars and trucks. Assume the two countries trade only with each other. The U.S. and Canada have the same total amount of hours of labor engaged in production. In which good does the U.S. have absolute advantage? Hint: remember that the U.S. and Canada have the same amount of labor. Look at their PPCs. What is the maximum amount of cars that U.S. workers can produce? What about Canadian workers? What does that tell you about the productivity of U.S. versus Canadian workers in cars? What about trucks?

Information for questions 21-25 The figure below depicts the production possibilities curve (PPC) for the U.S. and Canada, two countries that can produce cars and trucks. Assume the two countries trade only with each other. The U.S. and Canada have the same total amount of hours of labor engaged in production. In which good does the U.S. have comparative advantage?

Information for questions 14-18 The world is made of two countries, La La Land, and Liverpond. Labor is the only factor of production. La La Land has 100 hours of labor available to be employed, while Liverpond has 200 hours of labor available to be employed. There are two goods, songs and movies. The following table shows the output of each good per hour of labor, in the two countries.   La La Land Liverpond Songs 10 4 Movies 20 5 Suppose we plotted the two countries PPCs, placing quantity of songs on the horizontal axis, and quantity of movies on the vertical axis. Which country’s PPC would have the smallest slope, in absolute value?

Normally the WTO does not allow discriminatory treatment of member nations in trade, but it makes an exception in the case of

Information for questions 21-25 The figure below depicts the production possibilities curve (PPC) for the U.S. and Canada, two countries that can produce cars and trucks. Assume the two countries trade only with each other. The U.S. and Canada have the same total amount of hours of labor engaged in production. When the two countries trade with each other, the trade price of cars must be in between two certain bounds. Enter a reasonable trade price that lies between those bounds. This is the trade price of cars (in terms of trucks), so if you enter 2.5, that means “2.5 trucks / car,” or “2.5 trucks per car,” of “you get 2.5 trucks per car traded.” Enter a whole or decimal number. Enter 0 if the answer cannot be obtained with the information given. Any number within the correct bounds will be accepted.

Information for questions 10-13 The world is made of five countries, A, B, C, D and E. There are no transportation costs among these countries, just (possibly) tariffs. Countries A and B are considering forming a Regional Trade Agreement (RTA). If they do so, then they will have no tariffs against each other’s goods, but will keep their tariffs against countries C, D, and E. The following table lists the costs of production per automobile in the five countries. Also shown are country A’s tariffs imposed on imports of automobiles from other countries, before and after any RTA is formed.   Cost of production (thousands of $/car) A’s tariff (thousands of $/car) before RTA A’s tariff (thousands of $/car) after RTA Country A 22 — — Country B 15 5 0 Country C 10 5 5 Country D 11 4 4 Country E 18 4 4 Before forming an RTA, in order to conform with the “most favored nation” rule, country A should lower its tariffs on imports from:

Information for questions 20-24 The figure below depicts the production possibilities curve (PPC) of a country. It also depicts the consumption possibilities curve (CPC) when the country is engaged in trade with one other country. Point C is this country’s consumption when that trade occurs. Considering both this country and the other country, this country has absolute advantage in: