Which of the following statements about foreign trade iscorrect? Choose an answer:O 1. A good is imported if the world market price for this good is higher than the domesticopportunity costs of producing this good.O 2. A good is exported if the world market price for this good is lower than the domesticopportunity costs of producing this good.3. The levying of a domestic duty rate on an imported good increases theproducer surplus and reduces the domestic consumer surplus.O 4. If a country has an absolute advantage in one good, it also has a comparative advantagein that good.O 5. A particularly productive country can have a comparative advantage in all goods.

Absolute advantage:- Absolute advantage refers to an economy's ability to create more total…

Answered: Which of the following statements about…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For the large-country in the graph, the free-trade price of the product is Price $25 $20 $15 10 O $15; 10 units O $15; 30 units O $25; 10 units O $20; 30 units 20 30 40 Quantity P+t pw P and the amount imported is
Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by P=100-3Q; the home supply of widget is given by P = Q. The world price is $40. Now let the government of Gatorland give a $15 per unit subsidy on each widget exported. What is the value of total subsidy payments to Gatorland's widget exporters? O $825 O $600 O $125 O $225
QUESTION 22 P COUNTRY 1 25 20 15 10 5 d1 Q 0 0 3 6 9 1215182124 s1 IP INTERNATIONAL MARKET 25 20- 15 10- LO P 5 S2 P 0 0 3 6 9 1215182124Q 25 20- S1 15 IP 10 D2 5 D1 0 COUNTRY 2 ⠀⠀ 22. What is the net welfare gain from trade to the economy of country 1? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) a) 3 b) 6 c) 9 d) 13.5 e) 18 s2 IP d2 0 3 6 9 1215182124Q
QUESTION 8 25 20 15 10 LO 5 P COUNTRY 1 A+ 11 s1 |⠀⠀⠀ SP -IP d1Q 0 0 3 6 9 1215182124 INTERNATIONAL MARKET P 25 20 15 10 5 0 0 3 6 9 12 15182124 08. Under open trade, who will gain and who will lose in country 1? a) consumers gain and producers lose. b) producers gain and consumers lose. c) both producers and consumers lose. d) the poor lose and the rich gain. DE S2 ⠀⠀ FIP D2 25 20 S1 15 10 5 d2 0 0 3 6 9 1215182124 Q D1 Q P COUNTRY 2 s2 IP
Please explain the picture below.
1. Suppose the electronic calculator industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist can use to seek government assistance. Contrast the consequences of imposing a quota, negotiating a VER, and providing a production subsidy. 2. At free-trade prices, a widget sells for $20 and contains $8 worth of tin and $6 worth of rubber. In Country A nominal tariff rates are: What is the effective rate of protection on widgets in Country A? Explain briefly the economic meaning of your result. If this country were a large exporter of widgets, how would that affect your interpretation of the effective rate of protection received by this industry?
7. Lobbying for or against trade restrictions Trade restrictions affect the overall welfare of an economy, sin'ce they change the price consumers pay for a good and the quantity produced and consumed domestically. Trade restrictions, such as quotas, usually benefit domestic ▼ and hurt domestic since they the domestic price of a good. True or False: Producers find it difficult to exert the political influence needed to establish trade restrictions, because the benefits to producers are very small and widely dispersed, which makes it difficult for producers to organize. O False O True
No International Trade Consumer surplus, on the other hand, is the difference between the price consumers are willing and able to pay for contacts and the actual price that they pay. Vivan Graphically, consumer surplus is the area from the market price up to the demand curve and over to the equilibrium quantity. • Quantity Supplied Quantity Demanded Domestic Market Price Quantity Supplied Got it! So what is total consumer surplus in the contact lens market? Quantity Demanded 240 20 20 220 40 40 200 60 60 180 80 80 160 100 100 140 120 120 120 Enter a response then click Submit below 140 140 100 2$ 160 160 80 180 180 60 Submit MacBook Air

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