P Pw+s Pw a. 6 units O b. 17 units c. 25 units W O d. 31 units X 35 41 Q Consider the effects of an export subsidy in a small country using the graph above. What are exports with the export subsidy? Z 10 18 Domestic Supply Domestic Demand
Q: Find the revenue deficit if the Revenue Expenditure is $900 and the Revenue receipts is $100 ?
A: Revenue expenditure alludes explicitly to expenses that are critical for producing revenue inside a…
Q: Felix chooses between clothing, 9₁, and food, 9₂. His initial income is $4,000 a month, p₁ = 400,…
A: Consumer preference:It is related to the preference of consumers over a different bundle of goods.…
Q: If the long-run average total cost curve of an industry is declining at the point where it…
A: The issue you raised has to do with microeconomics' discussion of market structure and efficiency.…
Q: draw a graph of a product without any externality
A: An adverse effect or result of a certain economic operation or transaction that has an impact on…
Q: 1. Smart and Ferrari are both car firms. How do you think these firms differ in the way they go…
A: 1. Perfect Competition: A market structure characterized by numerous small firms selling identical…
Q: For example, the sticky-price theory asserts that the output prices of some goods and services…
A: The aggregate supply (AS) curve depicts the positive relationship between price level and aggregate…
Q: Karim O True increase production from 8 to 9 fire engines because the True or False: If…
A: A perfectly competitive market has a large no of sellers and hence none of the seller has the power…
Q: Answer the question on the basis of the accompanying demand schedule. Price $15 12 96 3 Quantity…
A: The demand schedule of a product is given. The price and the details of the quantity demanded are…
Q: The accompanying table gives domestic supply and demand schedules for a product. Suppose that the…
A: This can be described as a terminology in economics that represents the amount of commodities and…
Q: In one year, you meet 52 people who are each unemployed for one week and eight people who are each…
A: The unemployment rate is a figure showing the part of workers who are hunting for jobs but don't…
Q: Consider an open economy with a current population of 0.55 million people, and where the potential…
A: To determine if there is a gap in the current level of GDP, we need to calculate the actual level of…
Q: 1. Is scarcity of nonrenewable resources a major problem? What kinds of physical and economic…
A: Economics:It is a subject matter that focuses on the rational management of scarce resources that…
Q: Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling…
A: DS = demand for the Sky EaglePS = selling price of the Sky EagleDH = demand for the HorizonPH =…
Q: A pallette conveyor system used to transport pallettes of product at the Browning Harvey plant in…
A: The annual cost of owning, running, and maintaining an asset for its whole life is known as the…
Q: Population: 360 million Working - age population: 300 million Labor Force: 200 million Number of…
A: The unemployment rate measures the percentage of the labor force that is jobless and actively…
Q: Using the graph from the previous question, explain why a competitive industry is efficient. Be sure…
A: The capacity of a competitive industry to attain both allocative and productive efficiency qualifies…
Q: If tuition keeps increasing at the same rate as in 2019-2020, how much will it cost to complete a…
A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…
Q: The market works efficiently in the absence of externalities if the good is a rival and…
A: The externality is defined as the cost or benefit that is unrelated to the third party involved. It…
Q: draw a circular flow diagram where income is $200m consumption is $120m, tax/government spending is…
A: Keynesianism has grown in the postwar century in terms of its ability to alleviate economic…
Q: the GDP deflator is. (Enter your response rounded to the nearest whole number.) (Enter your response…
A: This can be defined as a concept that shows a given nominal amount refers to how many units of…
Q: The firm's economic profit (or loss) at this output level = . Write either profit number or loss…
A: Under perfectly competitive market there are large number of buyers and sellers. As there are large…
Q: Let b(p,s,t) be the bet that pays out s with probability p and t with probability 1−p. We make the…
A: Expected utility theory is used for understanding decision-making under risk.It posits that…
Q: Total cost can be divided into two types. What are those two types? Select one: a. fixed costs and…
A: Total cost in business economics is the complete cost of production which includes the costs…
Q: What are three economic negatives inherent in imperfect information and what would be an alternative…
A: The objective of this question is to identify three economic negatives that arise due to imperfect…
Q: Investment spending in macroeconomics refers to: adding to productive capital and changes to…
A: Investment spending in macroeconomics refers to option 1) adding to productive capital and changes…
Q: The following graph shows Sam's marginal willingness to pay (MWTP) curve for books at the utility…
A: Consumer surplus is an important economic concept that measures the difference between what…
Q: The natural unemployment rate might have increased because of A. an increase in the minimum wage and…
A: The amount of unemployment in an economy that occurs when there is no upward or negative impact on…
Q: Consider a corporation that has a total cost of TC = 6Q2 + 30. If the market is perfectly…
A: Total CostTC = 6 Q2 + 30PriceP = $43The market is perfectly competitive.
Q: (1) Laura has more Apples than Larry, then Larry prefers A to B - True or False? (ii) How does "B"…
A: Edgeworth box represents the total quantity of Apples on the horizontal axis and total quantity of…
Q: Suppose a consumer faced with prices p_1 = 9, p_2 = 12 consumes at some point x^0 where x_1 = 4,…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: This society's Unemployment Rate is_ Do you currently have a job? Are you currently seeking a job?…
A: The unemployment rate is a percent number. It shows how many folks who can work do not have a job,…
Q: What is the extent of income mobility in the US and how might it be increased?
A: National income:It refers to income earned from producing goods and services in an accounting year.…
Q: The table gives information about the marginal benefit and marginal cost of a trade school…
A: The marginal benefit table is provided below. Quantity Marginal Private BenefitMarginal Social…
Q: Suppose a firm operating in a perfectly competitive market, as shown in FIGURE 10: FIGURE 10 TR 20…
A: Total income, often seen as total revenue, is what a business makes by selling goods or services.…
Q: "ea under the curve or volume makes sense. ) Transfer the data into an Excel File Put your name in…
A: Marginal cost is the cost incurred by producers while producing one additional unit of product. In…
Q: Will's expenditures on food for three consecutive years, along with other values, are presented in…
A: The acronym CPI represents "Consumer Price Index." This widely used economic indicator calculates…
Q: 2. Consider the following experimental market: WTA Buyer WTP Seller Aya $1.20 Adil $1.80 Basma $1.20…
A: To determine the equilibrium quantity and price, we need to find the point where the total…
Q: An informed trader has private information that the value of a stock is $100 per share. Without this…
A: Adverse selection refers to the situation where informed traders take advantage of their private…
Q: mize profit n producing two goods that are related in conse O total marginal revenue equals total…
A: Marginal revenue is the change in total revenue when one additional unit of good is sold out. The…
Q: Consider the following model of a firm. The firm can sell any number of units at the constant price,…
A: Marginal cost is the additional unit that is added to the total cost. It is calculated by dividing…
Q: Use the following graph to answer the questions that follow. The graph depicts an economy where…
A: Aggregate demand (AD) is an economic concept that represents the total demand for all goods and…
Q: The following graph shows aggregate demand and short-run aggregate supply. 1.) Use the line drawing…
A: A consumer always tend to save more with the rise in their income level. Moreover, they prefer to…
Q: For each of the scenarios in the following table, indicate the most likely reason for the difference…
A: Human capital refers to the ability, skills, and aptitude of individuals which contribute to…
Q: How do you make people believe that the banking system is safe? In the old days it was often done…
A: The provided question has been answered from the generalized perspective of financial…
Q: How would we compute the present discounted value of payments of $8,000 received three years in the…
A: The present discounted value gives the amount of dollars that an individual is willing to invest for…
Q: Number of Workers 0 1 2 3 4 5 6 O is 5 O is 7 Total Product O is 7.5 0 8 25 30 34 Marginal Product…
A: Marginal product is referred to as an extra product that is produced on adding an additional unit of…
Q: Match the definition on the left with its term on the right. All of these terms ARE available in the…
A: Economies of Scale: Cost advantages gained when a firm produces on a larger scale, resulting in…
Q: xplain intuitively what will happen to the amount of output produced in an economy, the real wage…
A: A real wage basically alludes to the wage or salary procured by a worker in the wake of adapting to…
Q: If patient insurance inquiries arrive at Blue Choice insurance with a mean rate of 3.6 calls per…
A: The objective of the question is to calculate the exponential probability of waiting more than 0.5…
Q: The real wage rate (in base year prices) is $[ Suppose that aggregate demand increases by $400. Draw…
A: In the context of economics and other disciplines, equilibrium is defined as a state of stability or…
Step by step
Solved in 3 steps with 2 images
- Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.China is a major producer of grains, such aswheat, corn, and rice. Some years ago, the Chinesegovernment, concerned that grain exports weredriving up food prices for domestic consumers,imposed a tax on grain exports.a. Draw the graph that describes the market for grainin an exporting country. Use this graph as thestarting point to answer the following questions.b. How does an export tax affect domestic grainprices?c. How does it affect the welfare of domesticconsumers, the welfare of domestic producers,and government revenue?d. What happens to total welfare in China, asmeasured by the sum of consumer surplus,producer surplus, and tax revenue?Consider a small country that exports steel. Supposethat a ''pro--trade'' government decides to subsidizethe <:xport of s teel by paying a certain amount for eachton sold abroad. How docs this export subsidy affectthe domestic price of steel, the quantity of steel produced,the quantity of steel consunuxS, and the quantityof steel exported? How docs it affect consumersurplus, producer surplus, g·ovemment revenue, andtolal surplus? Is it a good policy from the standpointof oconomic efficiency? (Hint: The analysis of anexport subsidy is similar to the analysis of a tariff.)
- price supply domestic price- $35 import price + tarif $20 demand 100 300 500 650 850 quantity Based on the graph above, if there is a tariff of $15 per unit imposed on imports in this market: A. 750 units will be imported and tariff revenue to the government will be $11.250 B. 650 units will be imported and tariff revenue to the government will be $9,75O C. 350 units will be imported and tariff revenue to the government will be $5.250 D. 300 units will be imported and tariff revenue to the government will be $4,500The following figure shows the domestie demand and supply curves for a good. With free trade, the price of the good in the domestic market is P3. The govemment introduces a 5% tariff in the market which raises the domestic price to P2. Figure 7-1 Price Kyddng Demand E Quanity fer to Figure 7-1. With the imposition of the tariff, the level of imports to the domestic market is: CD AC BDSuppose the nation of Isoland is an importer of textiles and is looking for a way to raise government revenue. The following graph shows the effect of a tariff on textile imports. Price of TextilesQuantity of TextilesDemand Supply PWPW+TABCDEFGQS,1QS,2QD,2QD,1 Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles). Compared to the free trade scenario, the quantity of textiles consumed in Isoland will , and the quantity produced in Isoland will under a textile consumption tax. The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Before Tariff or Tax Under Tariff Under Consumption Tax After Change After Change Consumer Surplus…
- The figure to the right shows the U.S. demand and supply for leather footwear. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied? OA. Qo OB. Q₁ OC. Q₂ OD. Q₂-20 CHI Price $54 30 24 0 R S V W X τυ % Q₁ Y Q₂ US Supply World price US Demand Quantity of leather footwearBTU, draw a diagram to illustrate how the develop- c. As a percent of total exports, rank the states in orda b. Calculate the growth in exports from 2002 to 2012 156 I PART 2 SUPPLY AND DEMAND C. Assuming natural gas prices in Europe are $6.00 per BTU, draw a diagram to illustrate how the develop- ment of a natural gas terminal in the United States will affect supply and demand in the natural gas market for Europe. Explain your findings. d. How will the exporting of natural gas from the United States to Europe affect consumers and pro0- ducers in both places? Note that most of the natural gas in Europe originates from Russia's state-owned natural gas company, Gazprom. Access the Discovering Data exercise for Chapter 5 online to answer the following 3. questions. a. Rank the states in order of exports to China. Rank in order of most to fewest exports. for each state. of most to least exports to ChinoAssume the United States is an importer of televisionsand there are no trade restrictions. U.S. consumersbuy 1 million televisions per year, of which 400,000 areproduced domestically and 600,000 are imported.a. Suppose that a technological advance amongJapanese television manufacturers causes theworld price of televisions to fall by $100. Draw agraph to show how this change affects the welfareof U.S. consumers and U.S. producers and how itaffects total surplus in the United States.b. After the fall in price, consumers buy 1.2 milliontelevisions, of which 200,000 are produced domesticallyand 1 million are imported. Calculate thechange in consumer surplus, producer surplus,and total surplus from the price reduction.c. If the government responded by putting a$100 tariff on imported televisions, what wouldthis do? Calculate the revenue that would beraised and the deadweight loss. Would it be agood policy from the standpoint of U.S. welfare?Who might support the policy?d. Suppose that the…
- Consider a small country that exports steel. Supposethat a “pro-trade” government decides to subsidizethe export of steel by paying a certain amount foreach ton sold abroad. How does this export subsidyaffect the domestic price of steel, the quantity ofsteel produced, the quantity of steel consumed, andthe quantity of steel exported? How does it affectconsumer surplus, producer surplus, governmentrevenue, and total surplus? Is it a good policy fromthe standpoint of economic efficiency? (Hint: Theanalysis of an export subsidy is similar to the analysisof a tariff.)The following graph shows the effects of a tariff of 0.25 dollars per bushel of imported soybeans. Which of the following regarding the welfare effects of this tariff is INCORRECT? $ 2.25 2.00 60 70 130 140 Q/millions bushels D S World price O A. Government revenue is $15 million. B. Producer surplus gain is $16.25 million. O C. Net welfare change to this nation is a loss of $1.25 million. D. Consumer surplus loss is $33.75 million due to the tariff.3. State the effect of an export subsidy on the following: a. Price of the good in the exporting country. b. Price of the good in the importing country. C. Consumer surplus in the exporting country. d. Consumer surplus in the importing country. e. National welfare in the exporting country. f. National welfare in the importing country.