JNU SSS 2012 Question 17: Theories of international trade
The table below shows the domestic demand and supply conditions for computers in a small country, Norway, in the world computer market :
Price (in $)
Demand
Supply
1000
3200
800
1500
2800
1200
2000
2400
1600
2500
2000
2000
3000
1600
2400
3500
1200
2800
With free trade, suppose the rest of the world can supply computers at a price of $ 1500. Norway's imports will now equal ——. Compared to what occurred in the absence of trade, Norway's consumer surplus will —— and producer surplus will ——.
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Theories of international trade has come up 151 times in 6 exams since 2006.
What this question tests
This question is on Specialisation and the gains from trade, part of Theories of international trade in International Economics.
How specialisation raises consumption possibilities, including complete and incomplete specialisation.
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