Author Question: Which of the following is a valid argument for protection? A) national defense B) fair trade ... (Read 41 times)

crobinson2013 · **on:** Jun 30, 2018

Which of the following is a valid argument for protection?

A) national defense
B) fair trade
C) creation of employment
D) All of the above

Question 2

Suppose the two countries can trade shares in the ownership of their perspective assets. Further assume that a Home owner of a 25 percent share in Foreign land.

He will receive 25 percent share in Foreign land and thus receives 25 percent of the annual Foreign kiwi fruit harvest. Further assume that also that a Foreign owner of a 25 percent share in Home land is permitted. In this case, a Foreigner is entitled to 25 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor.

aprice35067 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

Good year at Home: 75 + 12.5 = 87.5 tons with probability 0.5
Bad year at Home: 37.5 from Home and 25 from Foreign = 62.5 with probability 0.5.
The expected return is: 0.5 87.5 + 0.5 62.5 = 75.