Figure 9-1 The figure illustrates the market for coffee in Guatemala 1PN 150- 140 130- 120- 110- 100 90 10- 70 60 30 40 30- 20 10- A C 2 4 6 8 10 12 14 16 18 20 22 24 26 28 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

Figure 9-1 The figure illustrates the market for coffee in Guatemala 1PN 150- 140 130- 120- 110- 100 90 10- 70 60 30 40 30- 20 10- A C 2 4 6 8 10 12 14 16 18 20 22 24 26 28 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Workers in industries protected by tariffs and quotas are likely to support these trade restrictionsbecause they believe the restrictions will protect their jobs.a. True b. False3. Imports are goods and services bought domesticallya. and produced domestically. b. but produced in other countries.c. and resold at a profit. d. and subject to tariffs.e. and not subject to tariffs.4. Which of the following are examples of non-tariff barriers? (Choose all that apply).a. Imported products have to comply with new health and safety regulations.b. A quota is imposed on imports of certain goods.c. There is a prohibition to import certain goods due to national security concerns.d. Tariffs are increased to restrict imports from one or more countries.e. Importers need to fill additional paperwork that makes certain imports more difficult.
5. Both foreign (Sf) and domestic steel (Sd) producers supply the US market (Sdtf is the combined supply curve). US Steel Market without Tariff US Steel Market with Tariff 10 O 10 20 30 40 s0 60 70 80 90 100 Quanity in millions of tons per year D 10 20 30 40 50 60 70 80 90 100 Quantity in millions of tons per Year 0 d st Sdet D -Sd St -Sdef a. After the imposition of the tariff, what is the approximate price of steel? Answer: b. How much of the $200 per ton tariff is paid by domestic consumers of steel? Answer: C. How is the quantity of steel consumed in the US affected? Answer: d. Who benefits and who is harmed by the tariff? Answer. asn soot u uo ad aous Price per Ton in 100s US0
The graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferred from the graph? Figure 6.9 Evolution of the Terms of Trade for the United States and China 125 120 - 115- 110 - China 105 100 95 90- 85 United Statoo 80 75 70 1980 1982 1984 1986 1088 1990 1092 1994 1096 1998 U A) China's growth may have hurt the U.S. terms of trade. 2000 2002 2004 2006 2008 2010 B) China's recent growth may have been export-biased. C) U.S. terms of trade have been hugely deteriorated over the past decasde. O D) U.S. exports have been competing with China's imporing sectors. 2012 2014
The graph below shows the trend of the terms of trade for the U.S. and China. Which would be inferred from the graph? Figure 6.9 Evolution of the Terms of Trade for the United States and China 125 120 115 110 - China 105 100 95 90 - 85 80 United Statoo 15 70 1980 1982 1984 1986 1088 1990 1092 1994 O A) China's growth may have hurt the U.S. terms of trade. 1096 1998 2002 2004 2000 B) China's recent growth may have been export-biased. 2006 2008 2010 2012 2014 O C) U.S. terms of trade have been hugely deteriarated over the past decasde. D) U.S. exports have been competing with China's imporing sectors.
Refer to the below graph, where Sa and Da are the domestic supply and demand for a product. $16 14 12 Price 10 8 6 4. 2 0 1 export. neither both 1 import IS 1 1 T T 1 13 1 1 1 20 40 60 80 100 120 140 160 180 Quantity What will this nation do if it were open to international trade and the world price was $8? 1 Sd Da
$ 14 SMexko 8 9 3 2 Price World Tarriff Price world 0 10 40 60 80 110 ONexico Pocket Calculators Refer to Figure. How many calculators would Mexico import with free trade. O 40 calculators O 60 calculators O 80 calculators O 100 calculators
47. Suppose that Home is a large country. Continue to assume that the free-trade world price is $100 per ton and that the Home government provides the domestic producer with an export subsidy in the amount of $40 per ton. Because of the export subsidy, the local price increases to $120 while the foreign market price declines to $80 per ton. Home price 120 100 80 15 20 40 45 Quantity What is the government expenditure? а. 600 b. 800 с. 1200 48. Using the above graph, what is the overall net welfare effect? a. -700 b. -500 с. -600
2 Using the graph, assume that the government imposes a $1 tariff on solar panels. Answer the following questions given this information. Price $13 65 8 Domestic Supply $1.00 Tariff World Price Domestic Demand о 30 40 60 84 96 Quantity a. What is the domestic price and quantity demanded of solar panels after the tariff is imposed? b. What is the quantity of solar panels imported before the tariff? c. What is the quantity of solar panels imported after the tariff? d. What would be the amount of consumer surplus before the tariff? e. What would be the amount of consumer surplus after the tariff? f. What would be the amount of producer surplus before the tariff? g. What would be the amount of producer surplus after the tariff? h. What would be the amount of government revenue because of the tariff? i. What would be the total amount of deadweight loss due to the tariff?
ce Question 9 Consider Figure 4.1. With free trade, the total value of Mexico's imports equal 14 09 3 2 $220. O $260. 10 40 60 80 SMexiko Price world+Tarrit 110 Price world OMexico Pocket Calculators
14. Under open trade, what will be the international price and quantity traded? a) $8 and 12 units. b) $9 and 18 units. c) $11 and 15 units. d) $11 and 9 units.
Price $16 129 14 12 10 8 co 6 4 2 Sd 0 10 20 30 40 50 60 70 80 90 Quantity Dd Please refer to the graph provided, which displays the domestic supply (S) and demand (D) curves for a certain product. The world price of this product is $6. If this particular market is open to international trade, but there is a tariff of $6 per unit imposed, then the domestic producers will earn $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $40 $600, and there will be no imports and no tariff revenue. $120, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80 O $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $40
Figure 9-1 PRICE (Dollars per unt of coffee) 70 8 50 10 с B P Uganda TI/ 9 D Domestic Supply 15 QUANTITY (Units of coffee) Domestic Demand World Price 20 Refer to Figure 9-1. From the figure it is apparent that Uganda will export coffee if trade is allowed. Uganda will import coffee if trade is allowed. Uganda has nothing to gain either by importing or exporting coffee. O the world price will fall if Uganda begins to allow its citizens to trade with other countries.