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problem 1: Could two countries with similar abilities to produce (production possibilities curves) and identical tastes (indifference curves) gain from trading with each other? Describe how or why not. You must give illustrations to defend your answer. List out all the suppositions.

problem 2: In addition to the production and consumption deadweight losses that result from the implementation of tariffs, what are other potential costs of tariffs? List and state at least three exs.

problem 3: In the context of national welfare, prove free trade is favored to autarky. Give graphical support to your answer.

International Economics, Economics

  • Category:- International Economics
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