A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): Domestic production (free trade): Domestic production (after tariff): Domestic consumption (free trade): Domestic consumption (after tariff): $20 per bottle 500,000 bottles 580,000 bottles 750,000 bottles 640,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to by_ Select one: O rise; $2.7 million O fall; $500,000 O rise; $2.5 million O rise; $2.75 million

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): Domestic production (free trade): Domestic production (after tariff): Domestic consumption (free trade): Domestic consumption (after tariff): $20 per bottle 500,000 bottles 580,000 bottles 750,000 bottles 640,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to by_ Select one: O rise; $2.7 million O fall; $500,000 O rise; $2.5 million O rise; $2.75 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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H3.
< Question 73 of 75 The automobile industry in Macroland successfully lobbies for import quotas that result in automobile prices that are $1,000 higher than before the quotas. Increased sales of automobiles produced in Macroland protect the jobs of 20,000 automobile workers. What is an additional consequence of the quotas that is not as attractive for Macroland's economy? Automobile producers in other countries will reduce the price of their cars to offset the higher prices required by the quotas. O Each of Macroland's citizens who buys a car will have $1,000 less to spend on other products, leading to reduced sales and fewer jobs in other industries. The government will lose tax revenue. Consumers will buy more cars than before, pushing the automobile market out of equilibrium.
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Economics Question
Country X has 100 units of labour and country Y has 200 units of labour. Both countries produce computers and televisions. The unit labour requirements are given in the table below: Computers Televisions Country X 50 Country Y 100 Assume that free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to televisions will be Select one: a. 0.02 (or 1/50) O b. 0.013 (or 1/75) c. 0.01 (or 1/100) d. impossible to determine without knowing the relative price of computers in terms of televisions