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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1. a. P ($) b. 19 18 17 16 15 14 13 12 11 10 0 I 8 I 9 10 12 I 14 11 13 15 I 16 I 18 20 22 24 26 28 17 19 21 23 25 27 The figure above represents the market for gadgets in Country H, a small country. Assume that there is free trade with the rest of the world (ROW). A gadget sells for $17 in the ROW, and it costs $2 to ship a gadget between Country H and the ROW. Q (K) What is the price of a gadget in Country H? How many gadgets are produced? How many gadgets are consumed? What is Country H's net gain or loss from trade? Give a $ value.
HELP PLEASE!!! Figure: Tariffs Price $90 60 40 0 350 650 $18,000. $54,000. O $31,000. O $13,000. S 1150 1550 1800 Domestic supply World supply + tariff World supply Domestic demand In the domestic market with international trade and a $20 tariff, revenues collected from the tariff are: Quantity c
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What is the range of prices (i.e., the CPC) at which trade can occur? Also, show (a) the possible CPC for each country and (b) the possible production and consumption possibility lines for both countries after trade. Show your work!
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Refer to Figure 9-3. The increase in total surplus in China when trade is allowed is a. $500. b. $600. c. $400. d. $750.
3. Trade creation and trade diversion Suppose that with free trade, the cost to the United States of importing a calculator from Mexico is $12.00, and the cost of importing a calculator from China is $10.00. A calculator produced in the United States costs $16.00. Suppose further that before NAFTA, the United States maintained a tariff of 25% against all calculator imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff against imports from China remains in effect. Assume that the tariff does not affect the world price of calculators. In the following table, indicate which country the United States imported calculators from before NAFTA. Then indicate which country the United States imported calculators from under NAFTA. Check all that apply. (Note: Leave the row blank if the United States doesn't import from either country.) Scenario Before NAFTA Under NAFTA Stakeholder United States Imports from... Mexico China In the following…
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4. Suppose that Egypt and the EU can only trade in cotton and wheat. Egyptian economy is smaller than that of the EU. The opportunity cost of 1 yard of cotton is 1.2 kg of wheat in Egypt. The world price of 1 yard of cotton is 1.1 kg of wheat. If there are no obstacles to trade, all markets are perfectly competitive and transportation is costless, then most likely in the long run. a. Egypt will import both cotton and wheat. b. Egypt will export both cotton and wheat. c. Egypt will export cotton and import wheat. d. Egypt will export wheat and import cotton. 5. For a fixed exchange rate system, if the home demand for the foreign currency increases, then a. The exchange rate is forced to change for sure. b. None of the statements is true c. The supply of the foreign currency by home central bank or treasury department would increase, so that the fixed. d. the supply of the foreign currency by foreign countries would automatically increase, so that the exchange rate
6. The arguments for restricting trade Suppose there is a policy debate regarding the United States' Imposing trade restrictions on Imported semiconductors. Read the following scenario and answer the question that follows. A senator from a state with several semiconductor factories argues that the United States should threaten to impose a tariff on Chinese semiconductors in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the senator using to argue for the trade restriction on semiconductors? O Jobs argument O National-security argument O Unfair-competition argument O Using-protection-as-a-bargaining-chip argument O Infant-industry argument
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.
11. If Portugal has 120 man-hours of resources available for production, while England has only 90, what is the relative price (opportunity cost) of wine in England, before trade begins?