3/25/22, 10:57 PMAssignment Print View9.The graph below shows a small but oil-rich country, with no international trade, existing in a state ofautarky.a. In the graph, identify the areas that represent consumer surplus (CS) and producer surplus (PS) inthe absence of international trade.Instructions: Use the tools provided "CS" and "PS" to illustrate these areas on the graph.Market for Oil80Tools75S7065CSPS605550454035302520151051 2 3 4 5 6 7 8 9 10 11 12 13 14Quantity (millions of barrels)Now suppose this small country opens its markets to international trade. Suppose the world price of oilis $50 per barrel.b. In the graph below, indicate the domestic quantity supplied (Qs) and the domestic quantitydemanded (Qd) and identify the areas that represent the new consumer surplus (CS) and newhttps://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=9.&postSubmissionView=13252718454372761&wid=13252718466068729&rol...1/3Price (dollars per barrel) 3/25/22, 10:57 PMAssignment Print Viewproducer surplus (PS).Instructions: Use the tools provided "Q" and "Q." to indicate the domestic quantity supplied andquantity demanded. Then use the tools provided "New CS" and "New PS" to illustrate these areas onthe graph.(i)Market for Oil80Tools75--7065QdQs60555045New CSNew PS403530252015101 2 3 4 5 6 7 8 9 10 11 12 13 14Quantity (millions of barrels)c. At the world price of $50 per barrel, this small nation will exportmillion barrelsof oil.d. Using the graph below, identify the gain to this economy from international trade.Instructions: Use the tools provided "Qs" and "Q." to indicate the domestic quantity supplied andquantity demanded. Then use the tool provided "Net Gain" to illustrate this area on the graph.https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=9.&postSubmissionView=13252718454372761&wid=13252718466068729&rol...2/3Price (dollars per barrel)스

9. The graph below shows a small but oil-rich country, with no international trade, existing in a state of autarky. a. In the graph, identify the areas that represent consumer surplus (CS) and producer surplus (PS) in the absence of international trade. Instructions: Use the tools provided "CS" and "PS" to illustrate these areas on the graph. Market for Oil 80 Tools 75 S 70 65 CS PS 60 55 50 45 40 35 30 25 20 15 10 D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity (millions of barrels) Now suppose this small country opens its markets to international trade. Suppose the world price of oil is $50 per barrel. b. In the graph below, indicate the domestic quantity supplied (Qs) and the domestic quantity demanded (Qd) and identify the areas that represent the new consumer surplus (CS) and new Price (dollars per barrel)

9. The graph below shows a small but oil-rich country, with no international trade, existing in a state of autarky. a. In the graph, identify the areas that represent consumer surplus (CS) and producer surplus (PS) in the absence of international trade. Instructions: Use the tools provided "CS" and "PS" to illustrate these areas on the graph. Market for Oil 80 Tools 75 S 70 65 CS PS 60 55 50 45 40 35 30 25 20 15 10 D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity (millions of barrels) Now suppose this small country opens its markets to international trade. Suppose the world price of oil is $50 per barrel. b. In the graph below, indicate the domestic quantity supplied (Qs) and the domestic quantity demanded (Qd) and identify the areas that represent the new consumer surplus (CS) and new Price (dollars per barrel)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Figure 9-1 The figure illustrates the market for coffee in Guatemala 130 88888888 140 130 120- 110 100 90 70+ S 50 RRS 40 30 89 20 10- Price & 12 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 9. Refer to Figure 9-1. With trade, Guatemala will a. export 22 units of coffee b. export 10 units of coffee. c. import 30 units of coffee. d. import 12 units of coffee. Domestic supply World price Domestic demand + 42 44 46 48 50 52 Quantity
6. The arguments for restricting trade Suppose there is a policy proposal to increase trade restrictions on imported microprocessors to the United States. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese microprocessors in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the president using to support their argument in favor of the trade restriction on microprocessors? Unfair-competition argument Infant-industry argument Jobs argument Using-protection-as-a-bargaining-chip argument National-security argument
"We've put tariffs on Chinese goods and China is paying." (Donald J. Trump) Critically evaluate Donald Trump's views on import tariffs as expressed here, using theories of international trade. Illustrate your answer with a diagram. I
Do not use Ai
15. Data and empirical observations have validated the fact thata. Sectors specific to export industries tend to lose from international trade, while sectorsspecific to import-competing industries tend to gain.b. All sectors tend to lose.c. All sectors tend to gain.d. None of the above is true.
The graph below shows the domestic supply and demand and the world price for an exporting country. Price of $100 shoes in 90 U.S. dollars C B D + B 80 D D Pworld 60 50 40 30 20 10 B A K O 1 Exporting country supply and demand graph 2 3 Schoos Exports = 2.5 million Identify the area on the graph that represents the consumer surplus for domestic consumers if the country exports its product. Dshoes 4 5 Millions of pairs of shoos
4. Tariffs Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size, the demand for and supply of wheat in Kenya do not affect the world price. The following graph shows the domestic wheat market in Kenya. The world price of wheat is Pw =$250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 490 Domestic Demand Domestic Supply 460 CS 430 400 370 PS 340 310 280 250 220 190 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of tons of wheat) If Kenya allows international trade in the market for wheat, it will import tons of wheat. Now suppose the Kenyan government decides to impose a tariff of $60 on each imported ton of wheat. After the tariff, the price Kenyan consumers pay for a ton of wheat is $ and Kenya will import tons…
3. Using the graph to the right, suppose the country opens up to international trade, the world price is $40, and the government institutes a $10 tariff on each unit imported. What is the quantity demanded, quantity produced domestically, quantity imported from abroad, consumer surplus, producer surplus, tariff revenue, and deadweight loss? Price 0 10 20 30 40 50 60 70 80 90 100 0 50 Comestic Supply Domestic Demand 100 150 200 250 300 350 400 450 Quantity 500
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
3. Gains from trade Suppose there exist two imaginary countries, Everglades and Denali. Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Country Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) Everglades 5 20 Denali 8 16 Suppose that initially Denali uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Everglades produces 15 million pairs of shorts and 20 million pounds of almonds, and Denali produces 8 million pairs of shorts and 48 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of…
1. The basis of trade Suppose that Germany and Portugal both produce cheese and wine. Germany's opportunity cost of producing a bottle of wine is 2 pounds of cheese. That is, Germany forgoes the production of 2 pounds of cheese when it produces a bottle of wine. Portugal's opportunity cost of producing a bottle of wine is 1/2 pound of cheese. a comparative advantage in the production of wine. a comparative advantage in the production of cheese.
1. You have just been put in charge of trade policy for Jamaica. Coffee is a recent crop that is growing well, and the Jamaican export market is developing, that is, Jamaica coffee is an infant industry. Jamaica coffee producers come to you and ask for tariff protection from cheap Brazilian coffee. What sorts of policies will you enact? Explain. 2. Does international trade, taken as a whole, increase the total number of jobs, decrease the total number of jobs, or leave the total number of jobs about the same? Hint: Provide your answer (with reasoning) based on what you expect under the partial equilibrium model for the exporting country, the importing country, and the net overall effect on the world.