Question

1. Suppose the U.S. equilibrium price of beef is $2 per kilo and Japan equilibrium price...

1. Suppose the U.S. equilibrium price of beef is $2 per kilo and Japan equilibrium price of beef is $4 per kilo; international equilibrium would be established by

A. The intersection of U.S. excess supply and Japan excess demand of beef.

B. The intersection of Japan excess supply and U.S. excess demand of beef.

C. The intersection of U.S. and Japan excess supply of beef.

D. The intersection of U.S. and Japan excess demand of beef.

2. Other things being equal, the effects of a an increase in income upon the demand, or supply, the equilibrium price, and the equilibrium quantity of a normal good.

A. increase demand, increase price, and increase quantity supplied.
B. increase demand, increase price, and increase quantity demanded.
C. increase supply, increase price, and increase quantity demanded.
D. decrease demand, decrease price, and decrease quantity demanded.

3. Other things being constant, if the U.S. inflation rate exceeds that of our trading partners, we expect

A. political instability in the U.S.
B. an improvement in the U.S. balance of payments.
C. a deterioration in the U.S. balance of payments.
D. a "dirty float" will emerge.

4. It is estimated that the price elasticity of demand for farm products is .2. Therefore, in order for consumers to increase their quantity demanded of farm products by 10 percent, the prices of these products would have to fall:

A. 10 percent
B. 20 percent
C. 50 percent
D. 90 percent

5. Modern socialist theory

A. emphasises the government ownership of the factors of production.
B. is not compatible with democracy.
C. emphasises government control rather than government ownership of the factors of production
D. can only exist under dictatorship.

Homework Answers

Answer #1

1) Intersection of excess supply ( lower price) and excess demand ( high price)

2) Increase in income will increase demand a(t shuft of demand curve)lead to increase in price and increase in Quantity supplied ( movement along supply curve)

3) Decrease in interest rate will reduce foreign portfolio Investment , leading to deterioration of balance of payments in short run.

4) Elasticity of demand=% change in demand/% change in price

-0.2=10/% change in price

% change in price=10/-0.2=-50%{ negitive sign shows Decrease in price}

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3. The price elasticity of demand for beef is about 0.60. Other things equal, this means...
3. The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to: A.            increase by approximately 12 percent. B.            decrease by approximately 12 percent. C.            decrease by approximately 32 percent. D.            decrease by approximately 26 percent.
Suppose that chicken breasts and beef steaks are demand substitutes and are traded in competitive markets....
Suppose that chicken breasts and beef steaks are demand substitutes and are traded in competitive markets. Suppose also that there was a reduction in the supply of chicken breasts due to a reduction in poultry from disease. A. The equilibrium quantity of chicken should increase. B. The equilibrium price of beef steaks should increase C. The equilibrium price of beef steaks should decrease. D. The equilibrium price of chicken should decrease. E. None of the above.
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply...
Suppose the equilibrium price of gasoline is $3 per gallon. a. Using the demand and supply graph, draw this equilibrium in the space below. Make this graph large, it will be used for future questions. b. Now suppose the government imposes a binding price ceiling on this market. Identify a value for this price ceiling that would be binding and show it on the graph. Graphically show whether excess demand or excess supply would result. c. With the price ceilings,...
1. A large increase in the income level in the U.S. along with no growth in...
1. A large increase in the income level in the U.S. along with no growth in Mexico’s income level is normally expected to cause (assuming no change in interest rates or other factors) a(n) ____ in U.S. demand for Mexico’s goods, and the Mexican peso should ____. a. increase; depreciate b. increase; appreciate c. decrease; appreciate d. decrease; depreciate 2. A decrease in U.S. interest rates relative to French interest rates would likely ____ the U.S. demand for euros and...
According to the law of demand an increase in the price of Pepsi will (ceteris paribus):...
According to the law of demand an increase in the price of Pepsi will (ceteris paribus): A)        increase the quantity demanded of Pepsi. B)        decrease the quantity demanded of Pepsi. C)        increase the demand for Pepsi. D)        decrease the demand for Pepsi. 3 points    QUESTION 7 A change in the demand for beef will most likely be caused by a change in the: A)        price of beef. B)        price of pork. C)        cost of producing beef D)        technology used...
Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal...
Suppose the supply of coal is perfectly inelastic, and the price elasticity of demand for coal is -0.4. If the government imposes a binding price ceiling for coal at a price that is 20 percent below the market equilibrium price, what is the impact of this policy on the market quantity? A) Excess demand equals 80 percent of the market equilibrium quantity B) Excess demand equals 8 percent of the market equilibrium quantity C) The policy does not affect the...
If the price elasticity of demand is -2, a 1 percent decrease in price will A....
If the price elasticity of demand is -2, a 1 percent decrease in price will A. double the quantity demanded. B. increase the revenue. C. decrease the revenue. D. increase the demand by 2%. E. Both B and D are correct.
37) Price per Constant- Quality of X Quantity of X Demanded per Time Period Quantity of...
37) Price per Constant- Quality of X Quantity of X Demanded per Time Period Quantity of X Supplied per Time Period $10 0 150 8 20 120 6 40 90 4 60 60 2 80 30 0 100 0 Based on the table above, if other influences remain constant and the market is free to adjust, a stable equilibrium price will be established at Select one: a. $4. b. $6. c. $8. d. $2. A shortage will occur when Select...
1. A subsidy to producers will usually: A. Reduce the equilibrium price and decrease the output...
1. A subsidy to producers will usually: A. Reduce the equilibrium price and decrease the output B. Reduce the equilibrium price and increase the output C. Increase the equilibrium price and increase the output D. Increase the equilibrium price and decrease the output 2. An increase in demand, assuming an upward sloping supply curve, will: A. Reduce the equilibrium price and decrease the output B. Reduce the equilibrium price and increase the output C. Increase the equilibrium price and increase...
1-As we move up the demand curve, the price elasticity of demand * A) increases B)...
1-As we move up the demand curve, the price elasticity of demand * A) increases B) decreases C) becomes unitary D) does not change 2-If the price of lemonade increases relative to the price of grape juice, the demand for: * A) grape juice will decrease. B) grape juice will increase. C) lemonade will decrease. D) lemonade will increase. 3-An increase in price will result in no change in total revenue if: * A) the percentage change in price is...