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Question: this is autarky...

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this is autarky?

Answer questions 1 and 10 based on a global economy of two Ricardian economies (Home, Foreign) whose industry technologies are given in the following table: Product aLx 0.5 aLY = 1 Foreign a*x = 0.5 aLY Table 1: Labor hours per unit of outputs Each of these two economies is endowed with 500 labor hours (ie, L-L-500).

10. Again, suppose that both Home and Foreign move from autarky to a free-trade regime and that the trade price of product X is 0.5Y. If Home exports 100 units of Y to Foreign, then from this bilateral trade, Homes and Foreigns gains worth product X, respectively units of A) zero; 100 B) 100; zero C) zero; 50 D) 50; zero 11. International trade can generate efficiency gains to all trading nations, because A) more resources are reallocated into absolutely advantaged industries everywhere B) all countries specialize in comparatively advantaged industries C) trade shifts production-possibility frontiers outwards everywhere D) all of the above 12. International trade can force every nation to undergo economic restructuring in the real world. This is because international competition can make expand everywhere fall and A) comparative-disadvantage industries; comparative-advantage industries B) absolute-disadvantage industries; absolute-advantage industries C) monopolies industries; oligopolistic industries D) all of the above

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