Author Question: If Japan is relatively capital rich and the United States is relatively land rich, and if food is ... (Read 156 times)

ap345 · **on:** Jun 30, 2018

If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intensive then trade between these two, formerly autarkic countries will result in

A) an increase in the relative price of food in the U.S.
B) an increase in the relative price of food in Japan.
C) a global increase in the relative price of food.
D) a decrease in the relative price of food in both countries.
E) an increase in the relative price of food in both countries.

Question 2

Are tariffs and quotas equivalent in their economic effects? Demonstrate.

What will be an ideal response?

Silverbeard98 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

No. There are government revenue differences. There are differences related to market dynamics, industrial organization of the protected industry, administration, and the potential for corruption.