Question : The following figure shows the demand curve, D, and the : 1377416

 

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.

17) Refer to the figure above. What is the domestic price of calculators in Barylia?

A) $10

B) $30

C) $40

D) $50

18) Refer to the figure above. If Barylia does not engage in international trade, what is the production of calculators in the country?

A) 10 units

B) 20 units

C) 40 units

D) 60 units

19) Refer to the figure above. If the economy of Barylia opens up to free trade, then which of the following statements is true?

A) Barylia will start importing calculators.

B) Barylia will start exporting calculators.

C) Domestic consumers will purchase a greater quantity of calculators than before.

D) The production and purchase of calculators within Barylia will remain the same as before.

20) Refer to the figure above. What is the domestic demand for calculators in Barylia, once the economy opens up to free trade?

A) 20 units

B) 50 units

C) 60 units

D) 100 units

21) Refer to the figure above. What is the domestic production of calculators in Barylia, once the economy opens up to free trade?

A) 10 units

B) 30 units

C) 60 units

D) 100 units

22) Refer to the figure above. Which of the following statements is true?

A) After the economy opens up to free trade, it will import 40 calculators.

B) After the economy opens up to free trade, it will export 40 calculators.

C) After the economy opens up to free trade, it will import 70 calculators.

D) After the economy opens up to free trade, it will export 70 calculators.

23) Refer to the figure above. What is the producer surplus before Barylia opens up to free trade?

A) $125

B) $250

C) $400

D) $325

24) Refer to the figure above. What is the producer surplus after Barylia opens up to free trade?

A) $225

B) $550

C) $750

D) $900

25) Refer to the figure above. What is the consumer surplus before Barylia opens up to free trade?

A) $250

B) $300

C) $350

D) $400

26) Refer to the figure above. What is the consumer surplus after Barylia opens up to free trade?

A) $75

B) $90

C) $100

D) $125

27) Refer to the figure above. What is the total surplus before Barylia opens up to free trade?

A) $250

B) $325

C) $800

D) $1,125

28) Refer to the figure above. What is the total surplus after Barylia opens up to free trade?

A) $455

B) $800

C) $1,000

D) $1,200

29) Refer to the figure above. Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?

A) Both the sellers and the buyers are made worse off.

B) Both the sellers and the buyers gain.

C) The domestic firms lose but the buyers gain.

D) The domestic firms gain but the buyers lose.

30) Refer to the figure above. Which of the following statements is true?

A) Barylia as a whole gained from opening up to free trade.

B) Barylia as a whole lost from opening up to free trade.

C) The buyers of calculators in Barylia gained from opening up to free trade.

D) The firms in Barylia that manufacture calculators lost from opening up to free trade.

31) Refer to the figure above. Which of the following best describes a method to compensate the group that was made worse off when Barylia opened to free trade?

A) The buyers could be taxed and the tax revenue could be used to compensate the sellers.

B) The sellers could be taxed and the tax revenue could be used to compensate the buyers.

C) Barylia could sell the calculators at a price below the domestic equilibrium price in the global market.

D) Barylia could sell the calculators at a price above the world price in the global market.