1. Refer to the diagram, where S d and D d are the domestic supply and demand fo
ID: 1113460 • Letter: 1
Question
1.
Refer to the diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per-unit tariff, per-unit revenue received by domestic and foreign producers, respectively, will be
Multiple Choice
A.Pa and Pt.
B.Pa and Pc.
C.Pt and Pc.
D. Pc and Pa.
2.
The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity supplied, and Qd is domestic quantity demanded. Assuming that Alpha and Beta are the only two nations in the world, the equilibrium world price must be higher than $1 because, at $1,
Multiple Choice
A.both nations want to export steel.
B.Alpha wants to export more than Beta.
C. Beta wants to import more than Alpha.
D. both nations want to import steel.
3.
The accompanying table shows the output (either machines or wine) that each unit of input in France and Germany can produce. We see that
Multiple Choice
A.France will see no economic basis for trading with Germany.
B. Germany has an absolute disadvantage in producing wine.
C.France has an absolute advantage over Germany in producing either output.
D. Germany has no absolute advantage over France in producing either output.
Domestic Market For Steel, Alpha Qs P Qd 60 $5 10 40 4 20 30 3 30 20 2 40 10 1 50 0 VWXy.z QuantityExplanation / Answer
Answering the first question as per Chegg policy
1. C) Pt and Pc
For domestic producers the per unit revenue received will be Pt and for foreign producers the per unit revenue will be Pc since Pc is the world price.
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