1. When a tax is imposed on a good, what do we know about the losses to buyers and sellers?Select one:a. They are less than the revenue raised by the government.b. They cannot be compared to the tax revenue raised by the government since the amount of the tax will vary from good to good.c. They are equal to the revenue raised by the government.d. They exceed the revenue raised by the government. 2.Suppose that Ghana has a comparative advantage in producing tuna and trade in tuna is now allowed, what can be said about Ghana?Select one:a. Ghana will only become an exporter of tuna if it also has absolute advantage in producing tunab. Ghana will become an importer of tunac. Ghana will become an exporter of tunad. Ghana will only become an importer of tuna if it also has absolute advantage in producing tuna 3. The world price of coffee is $30 per kg. The pre-trade price of coffee in Ivory Coast is $20 per kg. What would happen if Ivory Coast allows trade in coffee?Select one:a. Ivory Coast will import coffee, and the price in Ivory Coast will be $20b. Ivory Coast will export coffee, and the price in Ivory Coast will be $20c. Ivory Coast will import coffee, and the price in Ivory Coast will be $30d. Ivory Coast will export coffee, and the price in Ivory Coast will be $30 4. Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus?Select one:a. they both decreaseb. the equilibrium market price increases, and producer surplus decreasesc. they both increased. the equilibrium market price decreases, and producer surplus increases

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Answered: 1. When a tax is imposed on a good,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. When a tax is imposed on a good, what do we know about the losses to buyers and sellers?

Select one:

a. They are less than the revenue raised by the government.

b. They cannot be compared to the tax revenue raised by the government since the amount of the tax will vary from good to good.

c. They are equal to the revenue raised by the government.

d. They exceed the revenue raised by the government.

Suppose that Ghana has a comparative advantage in producing tuna and trade in tuna is now allowed, what can be said about Ghana?

Select one:

a. Ghana will only become an exporter of tuna if it also has absolute advantage in producing tuna

b. Ghana will become an importer of tuna

c. Ghana will become an exporter of tuna

d. Ghana will only become an importer of tuna if it also has absolute advantage in producing tuna

The world price of coffee is $30 per kg. The pre-trade price of coffee in Ivory Coast is $20 per kg. What would happen if Ivory Coast allows trade in coffee?

Select one:

a. Ivory Coast will import coffee, and the price in Ivory Coast will be $20

b. Ivory Coast will export coffee, and the price in Ivory Coast will be $20

c. Ivory Coast will import coffee, and the price in Ivory Coast will be $30

d. Ivory Coast will export coffee, and the price in Ivory Coast will be $30

Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus?

Select one:

a. they both decrease

b. the equilibrium market price increases, and producer surplus decreases

c. they both increase

d. the equilibrium market price decreases, and producer surplus increases

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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