a. If trade is avoided, Spain consumes _____ wrenches at a price of _____ per wrench. b. With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches. c. With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.
a. If trade is avoided, Spain consumes _____ wrenches at a price of _____ per wrench. b. With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches. c. With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a. If trade is avoided, Spain consumes _____ wrenches at a
b. With free trade, for a world price of $4 per wrench, Spain is producing _____wrenches.
c. With free trade, for a world price of $4 per wrench, Spain is consuming _______ wrenches.
d. With free trade, for a world price of $4 per wrench, Spain is importing _________wrenches.
e. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, Spain produces ____________ and imports __________wrenches.
f. If the world price is $4 per wrench, and the government of Spain imposes a tariff of $2, how much tariff revenue will the Spain’s government collect? _____
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