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 ?

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. 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 ?

   A. increase, increase
   B. increase, decrease
   C. decrease, increase
   D. decrease, decrease

4. Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

   A. Z
   B. X
   C. Y
   D. the optimal point cannot be determined from this graph

5. 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

6. 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

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

   A. $65 and 40 calculators
   B. $55 and 20 calculators
   C. $45 and 25 calculators
   D. $30 and 40 calculators

8. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. decrease in the money supply
   B. increase in the money supply
   C. decrease in the money demand
   D. None of the above

9. 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

10. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

    A. falls; rise; falls; surplus
    B. is static; low; rise; deficit;
    C. falls; falls; falls; surplus
    D. rise; falls; rises; deficit