Question

Please have the correct answer

QUESTION 7 Estimates of U.S. job gains and losses due to free trade agreements O show clear losses in the number of jobs. O show no change in jobs. show clear gains in the number of jobs. O show mixed results, leading to no clear conclusion.

Answer 1

Question 7 - Estimates of US job gains and losses due to the FTA-

- Show clear losses in the number of jobs

As manufacturing jobs are lost to countries with lower marginal cost. Thus importing is cheaper than manufacturing.

Question 11 - Market failures are less likely to occur whenever-

-when the free market produces less then what is socially optimal

As market failure occurs due to inefficieny in the distribution of goods and services. When rational self interest doesnt give optimal results

Question 15 - Trade between USA and mexico will occur as long as -

- 1/2 computer and 1/3 computers

	Computer        Opp Cost	Shoes        Opp Cost
USA	3               2 Shoes	6                (1/2) Computer
Mexico	1                3 Shoes	3                (1/3) Computer

Question 22 - During the Worldwide recession of 2007-2009

- all countries coordinated macroeconomic policy