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- The following table shows the export price index for New Zealand’s merchandise exports to Australia and China for 2002 and 2019.
Australia |
China |
|
2002 Export price index |
1000 |
1000 |
2019 Export price index |
1051 |
1412 |
Explain what the numbers in this table show.
Provide a plausible explanation for why the price indexes for each of these two countries are different (you don’t need to prove your proposed explanation).
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- Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price Quantity Supplied (Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded 100 0 0 15 200 4 14 300 8 13 400 12 12 500 16 11 600 20 10 700 5 24 9 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. BOO -O Demand -P Supply us free trade + Equilibrium Free trade 4 Supply wond wit Equilibrium PRICE (Dollars per fon) 700 600 500 400 300 200 100+ 0 6 0 1 2 3 4 10 12 14 16 18 20 22 24 0 2 4 QUANTITY (Tons of steel) With…Consider the following information pertaining to a country's imports, consumption, and production of t-shirts following the removal of Multi Fiber Agreement (MFA) quotas: Under After МFA МFA World Price ($/shirt) Domestic Price (S/shirt) Domestic Consumption (millions of shirts) Domestic Production (millions of shirts) 2.00 2.00 2.50 2.00 100 125 75 50 a. Use the information in the table above to graph the effects of the quota removal on domestic consumption and production. Include a companion graph for the world market like that shown in class. b. The deadweight loss associated with the quota is: c. The quota rents that were earned under the quota are: d. The gain in consumer surplus associated with quota removal is: e. The loss in producer surplus from the removal of the quota is: f. Assuming that the foreign government assigned the quota licenses, the amount the home country gained from removal of the quota is: 4.Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Price of Steel (Dollars per ton) 100 88 2882 8 20 10 Demand Supply 100 200 300 400 500 600 700 800 900 1000 Quantity of Steel (Tons) Because this country exports steel, the world price is represented by With this export subsidy, the price paid by domestic consumers is $ The quantity of steel consumed by domestic consumers , and the quantity of steel exported O True O False Triangle 8 Suppose that a "pro-trade" government decides to subsidize the export of steel by paying $10 for each ton sold abroad. Under the export subsidy, consumer surplus is $ S As a result, total surplus Polygon ? True or False: With the export subsidy, domestic producers will sell steel to…
- The table below represents the quantity of rice demanded for selected countries. Quantity of Rice Demanded (millions of metric tons) Price (U.S. dollars per metric ton) Japan Taiwan South Korea Market Total $600 13 7 8 500 14 8.5 10.5 400 15 10 13 300 16 11.5 15.5 200 17 13 18 a. Fill in the market quantity of rice demanded (column “Market”) for each given price. round to the nearest decimalThe graph depicts the market for oil, with the assumption that the United States can import any amount of oil it chooses at the world free trade price. Adjust the graph to reflect what happens when a 50% import tax is imposed on oil. Approximately how many million barrels are imported before the tax is imposed?This is the last question concerning this graph: Price 200 Domestic supply 120 Tariff 100 C 65 World price 40 Domestic demand 72.5 120 160 200 270 Quantity The economy has put a tariff of $35 per unit imported. Carefully following numeric instructions, calculate tax revenue with the tariff. A/
- The following graph shows the U.S. domestic market for jackets. (? 20 18 Domestic Supply Domestic Demand 16 14 Domestic Supply 12 10 Price world) Domestic Demand Price eQuota) + 0 8 16 24 32 40 48 56 64 72 80 QUANTITY (Millions of jackets) In the absence of trade with China, the equilibrium price of a jacket is $ At this price, both the domestic quantity demanded and the domestic quantity supplied equal million jackets. PRICE (Dollars) 2.If some country's exports of long steel products are $15 billion and it imports $55 billion of the same product. Compute the intraindustry trade index and determine whether long steel trade for this country is inter or intra industry trade.Both countries agree that one tonne of steel can be exchanged for one tonne of oil. Calculate the gains after trade is allowed if Country A consumes 30 tonnes of oil domestically.
- Compute the ratio of exports to imports for 2020 for each category.Steel Industry Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. 1. Because this country exports steel, the world price is represented by P1 or P2. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. 2. With this export subsidy, the price paid by domestic consumers is $???? per ton, and the price received by domestic producers is $???? per ton. 3. The quantity of steel consumed by domestic consumers INCREASES or REMAINS UNCHANGED or DECREASES, the quantity of steel produced by domestic producers INCREASES or REMAINS UNCHANGED or DECREASES, and the quantity of steel exported INCREASES or REMAINS UNCHANGED or DECREASES. 4. TRUE or FALSE:…Consider the following exports and imports for a country: Exports Imports Refined Petroleum $58.4B Cars $144.0B Crude Petroleum $52.3B Computers $92.4B Cars $47.6B Packaged Medicaments $84.1B Integrated Circuits $544.2B Broadcast Equipment $82.0B Packaged Medicaments $34.7B Crude Petroleum $75.1B Calculate the overall amount of intra-industry trade in the appropriate goods as well as the intra-industry trade share for the entire country.