ECON-201
Homework #3
Dr. Bell
WS03 

Homework is due at the beginning of class on Tuesday, April 29th. As always, I will go over the assignment on that day. Thus, no late homework will be accepted.

  1. Draw a production possibilities curve (PPC) for a country of your choice. Label both axes.

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  2. What do all points along the PPC have in common. Be specific!

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  3. Does it make sense for a country to specialize production and engage in trade if it is currently operating at a point below its PPC? Why or why not?

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  4. Define "free trade".

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  5. Define "protectionism".

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  6. Define an "embargo".

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  7. Define a "tariff".

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  8. Define a "quota".

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  9. What is NAFTA? Does it promote free trade or protectionism?

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  10. What is a country’s balance of payments?

 

 

 

 

11.  Think about the videos we’ve seen and the Dollars & Sense articles. Based on these arguments, why do many people (economists, bankers, activists,
       etc.) argue against purely free trade? Write your answer on a separate sheet of paper.