To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

Related Mcqs:

1. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. 1,600 computers, decrease, increase
   B. 1,600 computers, increase, decrease
   C. 1,200 computers, decrease, increase
   D. 1,200 computers, increase, decrease

2. Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

   A. decreases, decreases
   B. decreases, increases
   C. increases, decreases
   D. increases, increases

3. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?

   A. 20 calculators increase
   B. 25 calculators decrease
   C. 25 calculators increase
   D. 30 calculators increase

4. An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?

   A. relatively small; more difficult
   B. relatively small; easier
   C. relatively large; more difficult
   D. relatively large; easier

5. Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?

   A. 5 radios
   B. 10 radios
   C. 15 radios
   D. zero radios

6. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion
   B. trade channeling
   C. trade creation and trade diversion
   D. trade creation

7. A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is ?

   A. constant
   B. inelastic
   C. elastic
   D. Unitary elastic

8. With free trade the total quantity of imports would equal ?

   A. 10,000 units
   B. 40,000 units
   C. 42,000 units
   D. 50,000 units

9. With free trade the total value of imports would equal ?

   A. $100,000 units
   B. $400,000 units
   C. $600,000 units
   D. $800,000 units

10. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?

    A. Trades at Canada’s marginal rate of transformation
    B. Trade at Sweden’s marginal rate of transformation
    C. Specializes completely in the production of its export good
    D. Specializes partially in the production of its exports goods