Exercises for Input-Output Analysis 13. Suppose that you have been given the following data on the transactions within a city’s economy. a. Fill in the transactions table. b. Will this city have a larger or a smaller export multiplier than the city with the transactions listed in Table 6-2? Explain.   Producers     Inputs Computer Firms Wire Producers Local Merchants Households Exports Total Computers 0 $350 ___ $ 300 ___ $2,000 Wire 500 0 0 0 600 1,100 Local 0 0 0 2,500 0 ___ Labor 1,000 600 2,000 0 0 3,600 Imports ___ ___ 300 ___   1,750 Total 2,000 ___ ___ 3,600 ___

A 5 peso import tariff would raise how much government revenue? a) $3,000 b) 9,500 c) $12,500 d) $6,500

Consider a demand curve where Q = 20-3P and two supply curves where Q = P + 2 (closed economy) and P = 2 (open economy). a- Draw these three curves on the same captioned graph (add your graph to the appendix)  b- What are the price and the equilibrium quantity in a closed economy.  c- Evaluate the gains for consumers in an open economy as well as the gains and losses for local and foreign producers. (index: price, quantity consumed, quantity produced locally, imports. Make a comparison between closed economy and open economy.) Calculate the social surplus in an open economy. d- If the government establishes an import quota of 8 units, what will be the changes compared to the previous situation (open economy without protection); calculate the social surplus in this case.  e- How much should the price per unit be fixed so that the results are the same as those obtained in question d.  f- What should be the price so that the market is distributed one third, two thirds between local…

7. For many years, various groups have accused China of "dumping" exports onto the US market. That is, they claim that the Chinese government subsidizes Chinese exporting firms to allow them to sell at lower prices than US firms and/or lower than sellers from other countries. Some trade policy analysts argue that the US is harmed by this dumping behavior and that the US should impose restrictions on imports from China. Use a supply and demand diagram to assess this argument. Do you agree with the argument made and policy prescribed by the trade analysts?

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[India is the world’s largest consumer of sugar. Assume the world price for sugar is $750 per ton.] [Assume India currently has a tariff of $50 per ton on sugar and imports 7 million tons of sugar. Show this situation in a graph. Label the quantity demanded and the quantity supplied domestically and imports clearly on a graph. Explain your graph in 3-4 sentences. How to draw the graph?

1) Suppose the U.S. government wants to stop importing foreign cars. They believe by not importing cars from other countries they will have absolute advantage in manufacturing cars, and this will help the U.S. economy. Explain what is wrong with this idea. Use a graph to illustrate your point.

2. Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have ten hours of time available. They can use their time to do one of two things: make pancakes or make hamburgers. Bob can make two hamburgers in an hour or one pancake in an hour. Jake can make three pancakes in an hour or four hamburgers in an hour. a.) Draw Bob and Jake’s PPFs with hamburgers on the x-axis. Give equations for both PPFs in y=mx+b form. b.) Can Bob and Jake both benefit from trade if the terms of trade are three pancakes per hamburger? Why or why not?

Question 1 The quantity demanded for maize is: 17 kg's at R6 and 37 kg's at R5. 24 kg's at R5 and 52 kg's at R4. 37 kg's at R4 and 52 kg's at R3. 52 kg's at R3 and 37 kg's at R5.