Homework Answers
Under autarky form produces where demand=supply
under free trade firm price decreases to Pw and welfare increases by area J+G+F+E
Thus ans is C
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Question 7 Use the graph below to answer this question: As the country goes from autarky...
Suppose there are 2 countries that have the following supply and demand equations in autarky Country...
Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 800 - 2P Supply: Q = 2P - 200 Country B Demand: Q = 400 - 2P Supply: Q = 2P - 80 a) Given the information above which country would be the importer? (Enter A, B) b)What would be the Free Trade Price? c) If the importing country imposes a tariff equal to $10 per unit, what would be...
CI OD Use the graph below to answer this question: In autarky (before trade) consumer surplus...
CI OD Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph, Sis domestic supply, D is domestic demand. Pw is the world price. t is the tariff.) B to A : Question 7
Suppose there are 2 countries that have the following supply and demand equations in autarky Country...
Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 800 - 2P Supply: Q = 2P - 200 Country B Demand: Q = 400 - 2P Supply: Q = 2P - 80 a) In the importing country what would be the total amount of government revenue collected as a result of the tariff? b) In the importing country what would be the change in national welfare from moving from...
Illustrate on a graph the United States' move from autarky to free trade in the sugar...
Illustrate on a graph the United States' move from autarky to free trade in the sugar market. Assume the world price for sugar is less than the autarky price in the US. A fully correct answer will have the following: A fully labeled graph of the US market for sugar including price, quantity, US supply, US demand, the autarky equilibrium, the world price, the quantity demanded under free trade, the quantity supplied under free trade, and the size of imports/exports...
21. In the neoclassical model of trade, the movement of a country from autarky to free...
21. In the neoclassical model of trade, the movement of a country from autarky to free trade generally results in specialization in production, the situation in the Classical model. a. complete; unlike b. complete; as was also c. partial; unlike d. partial; as was also 22. If two countries have identical production-possibilities frontiers but different tastes, it is possible for each country to gain from trade with the other country a. in the Classical model but not in the neoclassical...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus consumer surplus plus producer Surplus plus tariffrevenues consumer surplus plus producer Surplus minus tariff revenues Question 6 Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph. Sis domestic supply. Dis domestic demand Pw is the world price is the tarif)
Suppose a small country producing cars (C) and food (F) is closed to free trade. Its...
Suppose a small country producing cars (C) and food (F) is closed to free trade. Its production possibilities frontier (PPF) reflects increasing costs (it’s bowed out). Finally, preferences in this country are such that consumers like both goods equally: U(DC , DF ) = D 1 2 CD 1 2 F . (a) Using graphs, show the autarky equilibrium in this country. Show both (i) a graph of the PPF and indifference curve, and (ii) a graph of relative demand...
17. In the following graph showing indifference curves for country A (a) and for country B...
17. In the following graph showing indifference curves for country A (a) and for country B (b) in a situation where both countries have the same production possibilities frontier, in autarky, Px/Py in country A is Px/Py in country B, and, if trade begins, country A will export good good Y sood X a. less than; X b. less than; Y c. greater than; X d. greater than; Y 18. Given the following diagram showing a fixed-quantity production-possibilities frontier, a...
Which country exports good X, which country imports good X? Explain Mark is the relative price...
Which country exports good X, which country imports good X?
Explain
Mark is the relative price line for country A and country B in
the graph before trade.
At Autarky (pre-trade), which point represents production point
for country A? Which point represent consumption point for country
A?
At Autarky (pre-trade), which point represents production point
for country B? Which point represent consumption point for country
B?
With free trade, which point represents production point for
country A? Which point represent...
Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 800 - 2P Supply: Q = 2P - 200 Country B Demand: Q = 400 - 2P Supply: Q = 2P - 80 a) Given the information above which country would be the importer? (Enter A, B) b)What would be the Free Trade Price? c) If the importing country imposes a tariff equal to $10 per unit, what would be...
CI OD Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph, Sis domestic supply, D is domestic demand. Pw is the world price. t is the tariff.) B to A : Question 7
21. In the neoclassical model of trade, the movement of a country from autarky to free trade generally results in specialization in production, the situation in the Classical model. a. complete; unlike b. complete; as was also c. partial; unlike d. partial; as was also 22. If two countries have identical production-possibilities frontiers but different tastes, it is possible for each country to gain from trade with the other country a. in the Classical model but not in the neoclassical...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus consumer surplus plus producer Surplus plus tariffrevenues consumer surplus plus producer Surplus minus tariff revenues Question 6 Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph. Sis domestic supply. Dis domestic demand Pw is the world price is the tarif)
17. In the following graph showing indifference curves for country A (a) and for country B (b) in a situation where both countries have the same production possibilities frontier, in autarky, Px/Py in country A is Px/Py in country B, and, if trade begins, country A will export good good Y sood X a. less than; X b. less than; Y c. greater than; X d. greater than; Y 18. Given the following diagram showing a fixed-quantity production-possibilities frontier, a...
Which country exports good X, which country imports good X?
Explain
Mark is the relative price line for country A and country B in
the graph before trade.
At Autarky (pre-trade), which point represents production point
for country A? Which point represent consumption point for country
A?
At Autarky (pre-trade), which point represents production point
for country B? Which point represent consumption point for country
B?
With free trade, which point represents production point for
country A? Which point represent...
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