Question : 4.2   Supply and Demand Analysis: An Oil Import Fee Refer to : 1381352

 

4.2   Supply and Demand Analysis: An Oil Import Fee

 

Refer to the information provided in Figure 4.4 below to answer the questions that follow.

 

Figure 4.4

 

1) Refer to Figure 4.4. At the world price of ________ per barrel of oil, the United States imports 6 million barrels of oil per day.

A) $100

B) $125

C) $150

D) >$150

 

2) Refer to Figure 4.4. The United States will import 2 million barrels of oil per day if a ________ per barrel tax is levied on imported oil.

A) $25

B) $50

C) $100

D) $150

3) Refer to Figure 4.4. The price of oil in the United States would be $125 per barrel, and the United States would import 6 million barrels of oil per day if the United States levies ________ per barrel tax on imported oil.

A) no

B) a $25

C) a $50

D) a $100

 

4) Refer to Figure 4.4. Assume that initially there is free trade. The price of oil in the United States will increase to $150 per barrel if the United States then imposes ________ tax per barrel of imported oil.

A) no

B) a $25

C) a $50

D) a $100

 

5) Refer to Figure 4.4. Assume that initially there is free trade. Tax revenue of $ 50 million per day will be generated if the United States imposes a ________ tax per barrel on imported oil.

A) $25

B) $50

C) $100

D) $150

 

6) Refer to Figure 4.4. Assume that initially there is free trade. If the United States allowed drilling for more oil in the Gulf of Mexico, it could

A) reduce U.S. oil imports without a tax.

B) decrease the demand for domestic oil.

C) reduce the supply of domestic oil.

D) increase the domestic price of oil.

Refer to the information provided in Figure 4.5 below to answer the questions that follow.

 

Figure 4.5

 

7) Refer to Figure 4.5. The United States imports 9 million CD-Rom drives at a world price of ________ per CD-Rom drive.

A) $15

B) $25

C) between $15 and $25

D) >$25

 

8) Refer to Figure 4.5. The United States will import 3 million CD-Rom drives if ________ tax per CD-Rom drive is levied on imported CD-Rom drives.

A) no

B) a $10

C) a $15

D) a $25

9) Refer to Figure 4.5. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives if the United States imposed ________ tax per CD-Rom drive on imported CD-Rom drives.

A) no

B) a $10

C) a $15

D) a $25

 

10) Refer to Figure 4.5. Assume that initially there is free trade. The quantity demanded of CD-Rom drives will be reduced by 3 million CD-Rom drives if the United States imposes ________ tax per CD-Rom drive on imported CD-Rom drives.

A) no

B) a $10

C) a $15

D) a $25

 

11) Refer to Figure 4.5. Assume that initially there is free trade. The quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million CD-Rom drives if the United States then imposes ________ tax per CD-Rom drive on imported CD-Rom drives.

A) no

B) a $10

C) a $15

D) a $25

 

12) A U.S. import fee on steel would reduce imports and lower the price of U.S. steel products.

13) A U.S. import fee on steel would increase the domestic quantity of steel demanded.

 

14) A U.S. import fee on steel would increase the domestic quantity of steel supplied.

 

 

 

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