ixty Questions: One Point for each correct answer A logical starting point from
ID: 1119449 • Letter: I
Question
ixty Questions: One Point for each correct answer A logical starting point from which the study of international trade begins is the principle of comparative advantage. Assume, for he U.S., that the domestic price of oil without international trade is higher than the world price of oil. This suggests that, in the production of oil a. the U.S. has a comparative advantage over other countries and the U.S. will export oil b, the U.S. has a comparative advantage over other countries and the U.S. will import oil. c, other countries have a comparative advantage over the U.S. and the U.S. will export oil. d. other countries have a comparative advantage over the U.S. and the U.S. will import oil 2. When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy, the result was that the country began to import automobiles. The change in policy improved the well-being of that nation in the sense that a both producers of automobiles and consumers of automobiles in that nation became better off as a result. b. the gains to automobile producers in that nation exceeded the losses of the automobile consumers in that nation. c. the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation. d, even though total surplus in that nation decreased, it was still true that consumer surplus and producer surplus increased Figure#1: The Impact of Imposing a Tariff Domestic Supply Price $13 $1.00 world Price 5 Domestic 0 3 Refer to Figure #1 demanded are a. $5 and 96. When the country is open to trade t without imposing the tarif the domestic price and domestic qiantity b. S5 and 30. 6 and 40 6 and 84. 4 Refer to Figure #1 with $1 per un ttariff the amounta frevenue collected by the government frm the tariff is a. $94. b. $84. c. $44 d. $34 5 Refer to Figure #1. The amount of eadweight loss caused by the tariff equals b. $44. c. $84. d. $96 RMUNNICHAExplanation / Answer
Q1
Answer
Option d
the other countries have the comparative advantage because the price is lower in other countries and the US consumer will purchase at world price because the price is lower than domestic price so they import it.
Q2
Answer
option c
the country im[ort it which is good for consumers and bad for producers but the total trade is in gain so the gain of a consumer is higher than producers.
Q3
Answer
P=$5
Qd=96 units and P=$5
option a
Q4
Answer
P=$6
Qd=84 and Qs=40
Import=Qd-Qs=84-40=44
revenue=impor*tariff=44*1=$44
option c
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.