Question :
11) Refer to Figure 4.1. At the world price of : 1381057
11) Refer to Figure 4.1. At the world price of 30 cents per apple the United States imports ________ million apples per day.
A) 2
B) 4
C) 6
D) 10
12) Refer to Figure 4.1. If a 10-cent-per-apple tax is levied on imported apples, the United States will
A) import 2 million apples per day.
B) import 4 million apples per day.
C) import 6 million apples per day.
D) import 8 million apples per day.
13) Refer to Figure 4.1. If the United States levies no taxes on apples, the price of apples in the United States would fall to ________, and the United States would import ________.
A) 20 cents per apple; 10 million apples per day
B) 30 cents per apple; 6 million apples per day
C) 40 cents per apple; 2 million apples per day
D) The price of apples in the United States after the U.S. government eliminated all taxes on imported apples cannot be determined from this information.
14) Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,
A) the quantity of apples demanded will be reduced by 4 million apples per day.
B) the quantity of apples supplied by U.S. firms will increase by 6 million apples per day.
C) the price of apples in the United States will increase to 40 cents per apple.
D) U.S. imports of apples will increase by 6 million per day.
15) Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,
A) the quantity of apples demanded will be reduced by 2 million apples per day.
B) the quantity of apples supplied by U.S. firms will increase by 2 million apples per day.
C) the price of apples in the United States will increase to 40 cents per apple.
D) all of the above
Refer to the information provided in Figure 4.2 below to answer the questions that follow.
Figure 4.2
16) Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is TRUE?
A) Price will still serve as a rationing device causing quantity supplied to rise from 8 to 11 soft pretzels.
B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is higher than the original equilibrium quantity.
C) Price will still serve as a rationing device causing quantity demanded to fall from 11 to 8 soft pretzels.
D) The market cannot move to a new equilibrium until there is also a change in supply.
17) An example of an ineffective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $5.00 per bushel.
A) $2.25
B) $3.00
C) $4.75
D) $6.00
18) If the equilibrium price of gasoline is $4.00 per gallon and the government will not allow oil companies to charge more than $3.00 per gallon of gasoline, which of the following will happen?
A) Demand must eventually decrease so that the market will come into equilibrium at a price of $3.00.
B) Supply must eventually increase so that the market will come into equilibrium at a price of $3.00.
C) A nonprice rationing system such as ration coupons must be used to ration the available supply of gasoline.
D) The market will be in equilibrium at a price of $3.00.
19) An example of a price ceiling would be the government setting the price of sugar
A) above the equilibrium market price.
B) at the equilibrium market price.
C) below the equilibrium market price.
D) none of the above
20) If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?
A) Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50.
B) There will be a shortage of coffee.
C) Supply must eventually increase so that the market will come into equilibrium at a price of $2.50.
D) The market will be in equilibrium at a price of $2.00.
