Inflation In Economics Questions And Graded Answers, 100% Guarantee

MICRO ECONOMICSQUESTIONS AND GRADED ANSWERS,
100% GUARANTEE


Consumer surplus in this market before trade is
a. A
b. A + B
c. A + B +D

d. C - b


Producer surplus in this market after trade is
a. A.
b. A + B.
c. B + C + D.

d. C. - c


The change in total surplus in this market because of trade is
a. D, and this area represents a loss of total surplus because of trade.
b. D, and this area represents a gain in total surplus because of trade.
c. B + D, and this area represents a loss of total surplus because of trade.

d. B + D, and this area represents a gain in total surplus because of trade. - b


The price and quantity of rifles in Mexico before trade is
a. P0 and Q0.
b. P1 and Q1.
c. P2 and Q2.

d. P1 and Q0. - a

, With trade, the equilibrium price of rifles and the equilibrium quantity of rifles demanded in
Mexico are
a. P1 and Q1.
b. P1 and Q2.
c. P2 and Q2.

d. P0 and Q0. - b


When trade takes place, the quantity Q2 - Q1 is
a. The number of rifles bought and sold in Mexico.
b. The number of rifles produced in Mexico.
c. The number of rifles exported by Mexico.

d. The number of rifles imported by Mexico - d


Mexico's gains from trade are represented by the area that is bounded by the points
a. (0, P0), (Q0, P0), (Q2, P1), and (0, P1).
b. (0, P1), (0, P2), (Q0, P0), and (Q1, P1).
c. (Q0, P0), (Q2, P1), and (Q1, P1).

d. (0, P0), (0, P2), and (Q0, P0). - c


With the tariff, the domestic price and domestic quantity demanded are
a. P1 and Q1.
b. P1 and Q4.
c. P2 and Q2.

d. P2 and Q3. - d


A result of the tariff is that, relative to the free-trade situation, the quantity of saddles imported
decreases by
a. Q2 - Q1.