Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied? a. All of the above are correct. b. Because equilibrium occurs where demand equals supply. c. Because there are several demand curves, and the market can't choose between them. d. Because markets are never in equilibrium. e. Because some of the good is imported or exported.7 A complicating factor in international trade is that a. gold is used for payments; there are no international payments without gold. b. trade between countries requires different currencies rather than one currency. c. barter is the basis for trade between countries; money is not used. d. many other countries prefer to use the U.S. dollar as currency, causing monetary shortage in the United States. A tariff affects imports a. by increasing supply, raising the price and reducing demand. b. by reducing the quantity demanded so that supply falls. c. by raising the price and reducing the quantity demanded. d. by limiting the quantity and raising the price to a higher level

Why does equilibrium in the market for a traded good not occur where that country's quantity demanded equals quantity supplied? a. All of the above are correct. b. Because equilibrium occurs where demand equals supply. c. Because there are several demand curves, and the market can't choose between them. d. Because markets are never in equilibrium. e. Because some of the good is imported or exported.7 A complicating factor in international trade is that a. gold is used for payments; there are no international payments without gold. b. trade between countries requires different currencies rather than one currency. c. barter is the basis for trade between countries; money is not used. d. many other countries prefer to use the U.S. dollar as currency, causing monetary shortage in the United States. A tariff affects imports a. by increasing supply, raising the price and reducing demand. b. by reducing the quantity demanded so that supply falls. c. by raising the price and reducing the quantity demanded. d. by limiting the quantity and raising the price to a higher level

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 19 A tariff implemented to reduce international imports to the U.S. will typically: O raise the price received by sellers and raise the price paid by consumers. O increase consumer and producer surplus. O raise the price received by sellers. O lower the price received by sellers. O raise the price paid by consumers. • Previous No new data to save. Last checke hp
Economics QUESTION 28 The following figure shows the demand and supply schedules for an import good in a small open economy with perfectly competitive markets. P FT. P C, and Pp are the free-trade, consumer, and producer prices respectively. The country first imposes a consumption tax t on the import good, and then a production subsidy s on the same, such that s t. D P, Pc PT S, S, D, D, With the tax and subsidy in place, the government revenue from this tax government expenditure on the subsidy by O a. falls short of, area b O b. exceeds; area c exceeds; area b+d O d. falls short of, area d e. exceeds; area a
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Ozland has closed itself off to international trade. Ozland citizens noticed that the policy shift resulted in no change in the prices of computers, why may that be? A. Autarky prices and free trade prices are the same. B. Autarky prices are larger than free trade prices. C. Autarky prices are smaller than free trade prices. D. The absolute value of autarky prices are negatively correlated with free trade prices. Explain your answer in up to 200 words and using a diagram
3. A fruit is traded in a competitive world market, and the world price is $10 per pound. The consumer quantity in this price is 100 million tonnes. One year later, overall fruit prices increase to $15 and total consumer level fall to 90 million tonnes. Under this circumstance, what is the price elasticity of demand fruit?
1. Wheat and the welfare consequences of trade:a. [Basic static analysis of trade] Construct a simple model of the (wholesale) market for wheatglobally, and in Australia. Provide a brief but clear explanation to accompany yourdiagrams, and reflect on what access to international trade means for Australian farmers,food manufacturers (e.g. bakeries) and food consumers (i.e. households). b. [Extended dynamic analysis] The market for wheat is affected by the recent unrest inUkraine (“Ukraine war could send...”, 2022). Wheat prices are reported to have increased55 per cent even before the invasion, just based on fears of sanctions and disruptedsupply, as Russia and Ukraine account for a large portion of global wheat supply. Russiais also a key supplier of fertilisers used by Australian farmers. How can we expect this toaffect Australian wheat producers? What flow-on effects might we expect to see in thewider Australian economy? 2. Petrol and the welfare consequences of taxes:a. [Basic…
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Q.2 Given the Equilibrium relative price Nation 1 Pa Pa 1 Nation 2 60 PA 4 Pr 2 50 - 40 30 P 20 PA 10 01 10 20 30 40 50 60 FIGURE 4.5 Equilibrium-Relative Commodity Price with Trade. Using a graph of offer curves, for each of the following, identify the effect of the change listes relative price of good X and on exports of good X by Nation 1. a. The supply ofY increases in Nation 2. 6. The demand for X decreases in Nation 1.
2.2 Evaluate the economic effect in the free market of a country for a good if its government imposes a maximum price for the good that lies below its equilibrium price.
Question 3 Like tariffs, quotas tend to lead to higher prices and reduced imports. increased government revenue. O increased consumer surplus. O All of these.
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