mics 40 Final Exam ersion The world price of palm oil is about $650 per metric t
ID: 1128758 • Letter: M
Question
mics 40 Final Exam ersion The world price of palm oil is about $650 per metric ton. Imagine that a small country places a $50 per metric ton tariff on palm oil imports. Before the tariff is in place, the country produces 100,000 metric tons of palm oil, and imports 200,000 metric tons of palm oi palm oil and imports 125,000 metric tons of palm oil. What is the change in consumer surplus in the small country after it imposes the tariff? I. After the tariff is put in place, the country produces 125,000 metric tons of a. -15 million dollars. b. -12.5 million dollars. c. -13.75 million dollars. d. None of the above sing the same information as in the previous problem, what is the change in produc urplus after the small country imposes the tariff? a. +5.625 million dollars. b. +5 million dollars. c. +6.25 million dollars. d. None of the above nc aaain what is the net effect of the tariff on sociaExplanation / Answer
5. b
Sales of government securities by the Federal Reserve Banks will increase the quantity of the bank reserves.
6. b
The US exchange rate will be depreciated if the US govt securities are sold as the supply of USD will increase relatively.
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