In the absence of trade, Canada’s equilibrium price and quantity equal ?

Related Mcqs:

1. 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

2. 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

3. 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

4. In the absence of traded, Norway’s equilibrium price and quantity equal ?

   A. $1,500 and 2,800 computers
   B. $2,000 and 1,600 computers
   C. $2,500 and 2,000 computers
   D. $3,500 and 2,000 computers

5. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

6. Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?

   A. free-trade area
   B. customs union
   C. common market
   D. monetary union

7. Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today ?

   A. The impact on both price and quantity is ambiguous
   B. Price will decrease, quantity is ambiguous.
   C. price will increase, quantity will decrease
   D. price will increase, quantity is ambiguous.
   E. Price will increase, quantity will increase

8. uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

   A. 2
   B. 10
   C. 1/2
   D. 5

9. If the price of good is equal to the equilibrium price ?

   A. there is a shortage and the price will fall
   B. the quantity demanded is equal to the quantity supplied supplied and the price remains unchanged
   C. there is surplus and the price will rise
   D. there is a shortage and the price will rise
   E. there is a surplus and the price will fall

10. 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