The cost of producing radios in Country Q is ten percent less than the cost of producing radios in Country Y. even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y. The statements above, if true, best support which of the following assertions?Choose the best optionClear Responselabor costs in Country Q are ten percent below those in Country Yimporting radios from Country Q to Country Y will eliminate ten percent of the manufacturing jobs in Country Y.the tariff on a radio imported from Country Q to Country Y is less than ten percent of the cost of manufacturing the radio in Country Ythe fee for transporting a radio from Country Q to Country Y is more than ten percent of the cost of manufacturing the radio in Country Q.

As part of a trade war, country A agrees to introduces a quota on cars imported from country B. Country A can then expectGroup of answer choicesthe price and the quality of cars imported from country B to decreasethe price of cars imported from country B to increase, and their quality to decreasethe price of cars imported from country B to decrease, and their quality to remain the samethe price and the quality of cars imported from country B to increase

If a good is imported into (large) country H from country F, then the imposition of a tariff incountry HA) raises the price of the good in both countries (the "Law of One Price").B) raises the price in country H and cannot affect its price in country F.C) lowers the price of the good in both countries.D) lowers the price of the good in H and could raise it in F.E) raises the price of the good in H and lowers it in F.

A firm increases output from 4 to 6 units per week. As it does its total costsrise from €1200 to €1600. The firms Marginal Cost is:(a) €200;(b) €150;(c) €300;(d) Zero.A18. If a country has a comparative advantage in producing shirts, which one of thefollowing is true?(a) The country produces shirts more efficiently (i.e. using less resources)than other countries.(b) The country produces shirts at a lower opportunity cost than othercountries.(c) The country produces shirts more inefficiently (using more resources)than other countries.(d) The country produces shirts at a higher opportunity cost than othercountries.A19. If in May 2008 €1 = £ 0.7941 St, a good costing £28 St would have a Euro priceof:(a) 35.57;(b) 35.37;(c) 35.26;(d) 35.55.A20. Which of the following EU countries is NOT currently in the Euro Zone?(a) Greece;(b) Austria;(c) Denmark;(d) Each of the above is not participating.

Consider a Ricardian model where both countries have expenditure share on manufactures  𝜃=12, Country 1 has 𝐴𝑚=2 and 𝐴𝑠=4, Country 2 has  𝐴𝑚∗=2 and  𝐴𝑠∗=3 and 𝐿=𝐿∗=100. Which of the following is TRUE? With free trade:Group of answer choicesCountry 1 consumes 𝐶𝑚=200 and 𝐶𝑠=200Country 2 consumes 𝐶𝑚∗=100 and 𝐶𝑠∗=200The relative price of manufactures to services is 𝑃𝑚𝑃𝑠=3

Consider a Samsung mobile phone assembled in Vietnam. Components are separately shipped to the factory in Vietnam for assembly. The table below lists the cost and country of origin for some the parts used (ignoring parts not listed). Country of origin Cost of componentDisplay Vietnam $70Image sensors Japan $40Processor South Korea $90Storage South Korea $15The assembled product is valued at $400 and shipped to South Korea for sale at $699.   Based on the transactions described above, which one of the following statements is true? Group of answer choicesThis leads to an increase, or positive change, in South Korea's trade balance.South Korean export increases by $105.Vietnamese export increases by $330.Japanese export increases by $400.