Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { S } = - 60 + 3 P \\ Q ^ { D } = 390 - 2 P \end{array}\] In the absence of international trade in skateboards how many skateboards will be sold in the United States?

A) 138 B) 258 C) 210 D) 930 A) 138 B) 258 C) 210 D) 930

Suppose the domestic supply (QS) and demand (QD)for MP3 players in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { S } = - 25 + 10 P \\ Q ^ { D } = 875 - 5 P \end{array}\] If the United States can import MP3 players from the rest of the world at a per unit price of $50, how many MP3 players will be produced in the United States?

A) 625 B) 475 C) 925 D) 525 A) 625 B) 475 C) 925 D) 525

Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { S } = - 60 + 3 P \\ Q ^ { D } = 390 - 2 P \end{array}\] If the United States can imports skateboards from the rest of the world at a per unit price of $75, how many skateboards will be produced in the United States?

A) 165 B) 240 C) 285 D) 215 A) 165 B) 240 C) 285 D) 215

Suppose the domestic supply (QS) and demand (QD)for MP3 players in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { S } = - 25 + 10 P \\ Q ^ { D } = 875 - 5 P \end{array}\] In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?

A) $60 B) $65 C) $90 D) $70 A) $60 B) $65 C) $90 D) $70

Suppose the domestic supply (QS) and demand (QD)for MP3 players in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { S } = - 25 + 10 P \\ Q ^ { D } = 875 - 5 P \end{array}\] The consumer surplus will _____ by _____ when the United States engages in international trade and the international price for MP3 players settles at $50.

A) increase; $2,625 B) increase; $6,000 C) decrease; $7,150 D) decrease; $13,500 A) increase; $2,625 B) increase; $6,000 C) decrease; $7,150 D) decrease; $13,500

Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: \[\begin{array} { l } Q ^ { 5 } = - 60 + 3 P \\ Q ^ { D } = 390 - 2 P \end{array}\] If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.

A) 65 B) 85 C) 75 D) 95 A) 65 B) 85 C) 75 D) 95

Exam 2: The Basic Theory Using Demand and Supply

Consider a product with a perfectly competitive market. Carefully explain why nations gain from engaging in international trade in this product. Do nations gain equally from trade? If not, what determines which country gains more? (In your answer you can assume a two-country world.)

(Essay)

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Question 21

If the world price is higher than the no-trade domestic price, then domestic producers gain and domestic consumers lose as a result of free trade.

(True/False)

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Question 22

If markets are perfectly competitive, the free-trade price of a good in an importing country is expected to be lower than the pre-trade price of the good in that country.

(True/False)

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Question 23

If the price of a normal good is measured along the vertical axis and its quantity along the horizontal axis, an increase in the price of the good will lead to:

(Multiple Choice)

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Question 24

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P In the absence of international trade in skateboards how many skateboards will be sold in the United States?

(Multiple Choice)

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Question 25

Suppose country A and country B are the only two countries in the world. Country A imports good X from country B and exports good Y. In the absence of any transportation cost, at the world price of good X:

(Multiple Choice)

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Question 26

Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: =-25+10P =875-5P If the United States can import MP3 players from the rest of the world at a per unit price of $50, how many MP3 players will be produced in the United States?

(Multiple Choice)

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Question 27

An increase in the imports of clothing into the United States from India will benefit the _ and hurt the _.

(Multiple Choice)

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Question 28

Which of the following is true of consumer surplus?

(Multiple Choice)

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Question 29

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P If the United States can imports skateboards from the rest of the world at a per unit price of $75, how many skateboards will be produced in the United States?

(Multiple Choice)

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Question 30

Suppose the domestic supply (Q^S_U.S.) and demand (Q^D_U.S)for bicycles in the United States are given by the following set of equations: .=2 =200-2. Demand (Q^D) and supply (Q^S) in the Rest of the World are given by the equations: =P =160-P. Quantities are measured in thousands and price in U.S. dollars. After the opening of free trade with the United States, if the world price of the bicycles settles at $60, the Rest of the World will:

(Multiple Choice)

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Question 31

The net economic gains from free trade are usually negative.

(True/False)

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Question 32

Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: =-25+10P =875-5P In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?

(Multiple Choice)

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Question 33

In a two-country world, the opening of free trade does not make everyone in the two countries better off. What assumption(s) must be made in order to make the claim that both countries do in fact benefit from the free trade?

(Essay)

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Question 34

Free trade is a zero-sum activity because a county always gains at the expense of its trading partner.

(True/False)

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Question 35

Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: =-25+10P =875-5P The consumer surplus will _ by _ when the United States engages in international trade and the international price for MP3 players settles at $50.

(Multiple Choice)

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Question 36

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.

(Multiple Choice)

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(39)

Question 37

Harry used work in a launderette and earned $30 a day. After work, he normally had a chicken burger worth $5 at McDonalds. However, his pay was lowered to $20 some days later. Then after work he used to have a vegetable burger worth $3. Here the vegetable burger is an example of a(n):

(Multiple Choice)

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Question 38

If an individual consumes more of good X when his/her income doubles, we can infer that

(Multiple Choice)

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Question 39

Refer to Figure 2.1 below. At a price of $70, the producer surplus equals:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 60

Exam 2: The Basic Theory Using Demand and Supply

Consider a product with a perfectly competitive market. Carefully explain why nations gain from engaging in international trade in this product. Do nations gain equally from trade? If not, what determines which country gains more? (In your answer you can assume a two-country world.)

If the world price is higher than the no-trade domestic price, then domestic producers gain and domestic consumers lose as a result of free trade.

If markets are perfectly competitive, the free-trade price of a good in an importing country is expected to be lower than the pre-trade price of the good in that country.

If the price of a normal good is measured along the vertical axis and its quantity along the horizontal axis, an increase in the price of the good will lead to:

Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P In the absence of international trade in skateboards how many skateboards will be sold in the United States?

Suppose country A and country B are the only two countries in the world. Country A imports good X from country B and exports good Y. In the absence of any transportation cost, at the world price of good X:

An increase in the imports of clothing into the United States from India will benefit the _____ and hurt the _____.

Which of the following is true of consumer surplus?

The net economic gains from free trade are usually negative.

Suppose the domestic supply (QS) and demand (QD)for MP3 players in the United States are given by the following set of equations: =-25+10P =875-5P In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?

In a two-country world, the opening of free trade does not make everyone in the two countries better off. What assumption(s) must be made in order to make the claim that both countries do in fact benefit from the free trade?

Free trade is a zero-sum activity because a county always gains at the expense of its trading partner.

Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.

Harry used work in a launderette and earned $30 a day. After work, he normally had a chicken burger worth $5 at McDonalds. However, his pay was lowered to $20 some days later. Then after work he used to have a vegetable burger worth $3. Here the vegetable burger is an example of a(n):

If an individual consumes more of good X when his/her income doubles, we can infer that

Refer to Figure 2.1 below. At a price of $70, the producer surplus equals:

International Economics Is Different

Why Everybody Trades: Comparative Advantage

Trade: Factor Availability and Factor Proportions Are Key

Who Gains and Who Loses From Trade

Scale Economies, Imperfect Competition, and Trade

Growth and Trade Part II: Trade Policy

Analysis of a Tariff

Nontariff Barriers to Imports

Arguments for and Against Protection

Pushing Exports

Trade Blocs and Trade Blocks

Trade and the Environment

Trade Policies for Developing Countries

Multinationals and Migration: International Factor Movements

Payments Among Nations

The Foreign Exchange Market

Forward Exchange and International Financial Investment

What Determines Exchange Rates

Government Policies Toward the Foreign Exchange Market

International Lending and Financial Crises

How Does the Open Macroeconomy Work

Internal and External Balance With Fixed Exchange Rates

Floating Exchange Rates and Internal Balance

National and Global Choices: Floating Rates and the Alternatives

Filters

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P In the absence of international trade in skateboards how many skateboards will be sold in the United States?

An increase in the imports of clothing into the United States from India will benefit the _ and hurt the _.

Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: =-25+10P =875-5P In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: =-60+3P =390-2P If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.