http://tinypic.com/view.php?pic=2s9txg6&s=5 19. Refer to the figure above. How m

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http://tinypic.com/view.php?pic=2s9txg6&s=5

19. Refer to the figure above. How much corn would be imported if the world equilibrium price is P1?
a. Q5 - Q3
b. None
c. Q3 + Q1
d. Q5 - Q1
e. Q3 - Q1

20. Refer to the figure above. If the world price of corn is P1 and a tariff equal to P2 - P1 is imposed on each ton of imported corn, which of the following is not true?
a. Imports will decrease to Q4-Q2
b. The government will collect (P2-P1)(Q4-Q2) in revenue
c. There will be a loss of domestic consumer surplus
d. There will be a loss of domestic producer surplus
e. The price will increase.

Units of Resource-Total Product
0 -----------------------0
1 -----------------------50
2 -----------------------105
3 -----------------------140
4 -----------------------165

Consider the table above. Assume that the resourse and output markets are both perfectly competitive. The equilibrium price of the resource is $17.50 and the equilibrium price of the product is $0.50. How many units of the resource will be hired by a profit maximizing firm?
a. 1 unit
b. 2 units
c. 3 units
d. 4 units

Explanation / Answer

D

C

2

B

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