Question

please answer 3,4,16,and 27 correctly.

Question 3

3 points Save Answer QUESTION 3 Use the graph below and the following information to answer the next question(s). The world price of soybeans is $2.00 per bushel, and the importing country is small enough not to affect the world price. 2.25 2.00 World price 60 70 130 140 Qimilions bushels Figure 6.1

Question 4

Answer 1

3. Option B

Domestic Production at price of $2 is 60 millions. With the imposition of tariff the domestic production will increase to 70 million, thus increase of 10 million.

4 Option A

Imports at the price of $2 = 140 million - 60 million = 80 million. Imports at price of $2.25 ( after imposition of tariff) = 130 million - 70 million = 60 million. So, the tariffs reduce imports by 20 million ( 80 - 60).

16. Option C

Governments who allow their exchange rate to devalue may cause inflationary pressures to occur. Devaluation of a currency can cause inflation because AD increases, import prices increase and firms have less incentive to cut costs. If inflation is high then growth will be reduced.

17.Option B

According to the Trump administration, NAFTA has led to trade deficits, factory closures, and job losses for the U.S.
NAFTA is an enormous and enormously complicated deal looking at economic growth can lead to one conclusion, while looking at the balance of trade leads to another.