exam 2 Econ
tax revenue collected by the government equals
240
use the figure above, how is the burden of the tax shared between buyers and sellers ? buyers bear
3/4 of the burden, and sellers bear 1/4 of the burden
the figure above shows that the dwl from the tariff is
30 million
in the absence of trade, total surplus in the guatemalan coffee market amounts to
d. 1,650
refer to the figure above. you have $36 to spend on good x and good y. if good x costs $6 and good y costs $12, your budget constraint is
d. de
in this market, a minimum wage of $7.25 is
b. binding and creates unemployment
how much of the tax will the buyers pay
2
how much of the tax will the sellers pay
2
the figure above shows that the gov revenue from the tariff is
20 million
how much will the seller receive after the tax is imposed
6
when trade is allowed
a. Guatemala producers of coffee become better off and Guatemala consumers of coffee become worse off
in the absence of trade, the equilibrium price of coffee in Guatemala is
b. $90
if the wheat is in the competitive equilibrium, the consumers' surplus will equal
b. area 1+2+4
when trade in coffee is allowed, producer surplus in Guatemala
b. increases by the area b+d+g
at harvest time the supply of wheat is perfectly inelastic. if the gov. taxes wheat at $1 a bushel then
the seller pays the entire tax
with trade, total surplus in the Guatemalan coffee market amounts to
c. 1,870
from the figure it is apparent that
c. Guatemala has a comparative advantage in producing coffee, relative to the rest of the world
refer to the figure above. you have $600 to spend on good x and good y. if the x costs $100 and good y costs $100, your budget constraint is
c. cd
when trade in coffee is allowed, consumer surplus in Guatemala
c. decreases by the area b+d
how much will the buyer pay for the product after the tax is imposed
10
how many fewer units are bought and sold because of the price ceiling that would have been bought and sold at the equilibrium price?
50 125- 75= 50
the number of units bought and sold at the price ceiling is
75
suppose that wheat producers lobby the government for a price floor and receive one. The price floor is set at pf. what is the change in the total surplus at the price floor, compared to at the equilibrium price?
C. there was a loss in total surplus equal to (area 4+5)
suppose that wheat producers lobby the government for a price floor and receive one. the price floor is set at pf. what is the size of the total surplus at pf ?
a. area 1+2+3
with trade, Guatemala will
a. export 22 units of coffee
relative to the no-trade situation, trade with the rest of the world results in
a. guatemalan consumers paying a higher price for coffee
if the gov. removes a binding price ceiling from a market, then the price paid by buyers will
a. increase, and the quantity sold in the market will increase
in the absence of trade, total surplus in Guatemala is represented by the area
b. a+b+c+d+f
suppose that wheat producers lobby the government for a price floor and receive one. the price floor is set at pf. what is the size of the producers' surplus at pf?
b. area 2+3
refer to the figure above. you have $300 to spend on good x and good y. if good x costs $30 and good y costs 50, your budget constraint is
b. bc
the country for which the figure is drawn
d. has a comparative disadvantage relative to other countries in the production of cars and it will import cars
In this market, a minimum wage of $7.25 creates a labor
d. surplus of 4,500 workers
