Question : Refer to the information provided in Figure 4.1 below to : 1381348

Refer to the information provided in Figure 4.1 below to answer the questions that follow.

Figure 4.1

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. The United States will import 2 million apples per day if a per-apple tax of ________ is levied on imported apples.

A) 10 cents

B) 20 cents

C) 30 cents

D) 40 cents

13) Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.

A) 0 cents

B) 10 cents

C) 20 cents

D) 30 cents

14) Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax is imposed.

A) 10 cents

B) 20 cents

C) 30 cents

D) 40 cents

15) Refer to Figure 4.1. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.

A) 10 cents

B) 20 cents

C) 30 cents

D) 40 cents

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 the intersection of S2 and D, and supply shifts from S2 to S1. Which of the following statements is true?

A) Price will still serve as a rationing device causing quantity demanded 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 lower than the original equilibrium quantity.

C) Price will still serve as a rationing device causing quantity supplied to fall from 8 to 4 soft pretzels.

D) The market cannot move to a new equilibrium until there is also a change in supply.

17) An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.

A) $3.75

B) $5.00

C) $7.75

D) $12.00

18) If the equilibrium price of gasoline is $3.00 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon of gasoline, which of the following will happen?

A) The market will be in equilibrium at a price of $2.00.

B) Supply must eventually increase so that the market will come into equilibrium at a price of $2.00.

C) Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00.

D) A nonprice rationing system such as ration coupons must be used to ration the available supply of gasoline.

19) An example of a ________ would be the government setting the price of coffee below the equilibrium price.

A) non-income tax

B) rational expenditure

C) black market

D) price ceiling

20) If the market price of green tea is $20.00 per pound but the government will not allow green tea growers to charge more than $15.00 per pound of green tea, which of the following will happen?

A) Demand must eventually decrease so that the market will come into equilibrium at a price of $17.50.

B) There will be a shortage of green tea.

C) Supply must eventually increase so that the market will come into equilibrium at a price of $17.50.

D) There will be a surplus of green tea.