Question

19. The method we used to determine whether a country/society was better or worse off after a change in policy or a movement towards free trade (from autarky) was a. by calculating the net effects b. by examining the total surplus c. by considering the deadweight loss triangles d. all of the above e. none of the above (not including d) ------------------------------------------------------------------------------------------------------------------------- 20. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a. the home country imports more of the good with the higher tariff price b. the foreign export supply curve is horizontal because Home influences the world price c. the tariff policies in the home country have an significant effect on the world price d. the foreign export supply curve is horizontal because Home demands a higher, fixed tariff price e. the home import demand curve is downward-sloping because of the law of demand ------------------------------------------------------------------------------------------------------------------------- 21. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a. the foreign export supply curve shifts up by the amount of the tariff b. the home import demand curve shifts up by the amount of the tariff c. the home import demand curve is horizontal d. we assumed home was a net importing country in order to make the assumption of PC ------------------------------------------------------------------------------------------------------------------------- 22. One of our main points when examining the impact of immigration on wages in the long-run was that a. there is no change in wages because the slopes of the capital-labor ratios in each industry did change b. there is a change in wages because the slopes of the capital-labor ratios in each industry did not change c. output in the labor-intensive sector decrease d. None of the above work e. All of the above work (not including d) ------------------------------------------------------------------------------------------------------------------------- 23. In the S-F model, migration of labor into a country was specifically addressed by (choose the incorrect one): a. by demonstrating the amount of immigration by the ?L b. by predicting which sectors would experience the most unemployment c. by pivoting the axis inward on the agricultural side in our diagram d. by shifting the value of marginal product curve right e. by assuming the migration went to the low-skilled sector ------------------------------------------------------------------------------------------------------------------------- 24. Which of the following is true from an import tariff on a small country under PC? a. the net effect on that country’s welfare is equivalent to the drop in CS for those citizens b. it generally lowers government revenue c. producers benefit by a greater amount that the country does d. the net effect on that country’s welfare is negative ------------------------------------------------------------------------------------------------------------------------- 25. In the long-run model, which outcome is most likely to take place before a long-run equilibrium is reached following immigration? a. the wage could change, as the K-L ratios change as labor and capital move between sectors b. the wage could change, as the K-L ratios change as labor and capital stops flowing between sectors c. the wage would stay constant as the K-L ratios change as labor and capital move between sectors d. the wage could change, as the K-L ratios stay constant as labor and capital move between sectors ------------------------------------------------------------------------------------------------------------------------- Figure 5 26. Refer to Figure 5 for the Home country. After the imposition of the tariff, the producer surplus in Home a. increases by $90 b. decreases by $108 c. increases by $84 d. increases by $108 ------------------------------------------------------------------------------------------------------------------------- 27. Refer to Figure 5 for the Home country. Which of the following statements is most correct? a. The change in CS after the tariff is the area (a + b + c + d) b. CS falls after the tariff by the amount of 156 c. CS falls after the tariff by the amount of 180 d. CS falls after the tariff by the amount of 192 Last semester e. Both a and b ------------------------------------------------------------------------------------------------------------------------- 28. Refer to Figure 5 for the Home country. The overall net effect for the Home country is a. $24 b. $28 c. $42 d. $78 ------------------------------------------------------------------------------------------------------------------------- Figure 6 ------------------------------------------------------------------------------------------------------------------------- 29. Consider Figure 6, which of the following is most true? a. area X is equivalent to the total of areas a and b, in theory b. area X is equivalent to area C, in theory c. area Z is equivalent to the total of areas b and d, in theory d. both a and b e. both b and c ------------------------------------------------------------------------------------------------------------------------- 30. Consider Figure 6. Which of the following statements is true? a. Area C is a measure of tariff revenues, but also a measure of economic rents from a quota program, roughly speaking b. Area C is a measure of tariff revenues, but also a measure of rent-seeking behavior from a quota program c. The deadweight losses are bigger for a tariff program when compared to a quota program d. We determined that a tariff program is definitely better than a quota because area C are government revenues ------------------------------------------------------------------------------------------------------------------------- 31. Consider Figure 6, which is the graph for the small home country doing tariffs (from our lectures). Area X is a measure of ______. a. government revenues from quota b. the deadweight loss from a tariff c. quota rents from a tariff d. consumer surplus and producer surplus from a tariff e. none of the above ------------------------------------------------------------------------------------------------------------------------- 32. Consider Figure 6. Which statement is true? a. there is no export supply curve shown because Home is small b. the export supply curve is either line F or G c. the home import demand curve is downward sloping because Home is small d. all of the above are correct ------------------------------------------------------------------------------------------------------------------------- 33. Under a quota program, if the rent-seeking behavior outweighs the value of quota rents, then a. area c is erased in the net effect calculation b. the net effect is area b + d c. the amount of imports will be greater d. this is a signal of a low level of corruption with that government ------------------------------------------------------------------------------------------------------------------------- 34. Remember our conversation on how free trade takes away PS by allowing consumers to get a lower price in the world? Which statement best describes the conversation that followed in lecture? a. the geometry of gaining more in CS does not tell the whole story: there may be qualitative considerations associated with more Walmarts b. the geometry of gaining more in CS does not tell the whole story: there may be qualitative considerations associated with consumers lobbying congress for lower prices c. the geometry of losing the PS does not tell the whole story: there may be qualitative considerations associated with producers forcing consumers to buy d. the geometry of losing the PS does not tell the whole story: there may be qualitative considerations associated with job loss ------------------------------------------------------------------------------------------------------------------------- 35. Consider the hypotheticals we did for the He theory in immigration. A higher K-L ratio (from some initial level) a. implies capital, machinery, become relatively less productive b. implies capital, machinery, become relatively more productive c. implies workers become relatively less productive d. implies workers become relative importers ------------------------------------------------------------------------------------------------------------------------- 36. Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level) a. implies capital and machinery migrate to more productive sectors b. implies capital and machinery become relatively less productive c. implies workers become relatively less productive d. implies workers become relative exporters ------------------------------------------------------------------------------------------------------------------------- 37. Consider the hypotheticals we did for the He theory in immigration. A higher L-K ratio (from some initial level). Which of the following is most correct regarding the outcome for capital-owners and workers if this hypothetical took place? a. capital-owners and workers both see their purchasing power fall b. capital-owners see their purchasing power fall, workers see their purchasing power rise c. capital-owners see their purchasing power rise, workers see their purchasing power fall d. capital-owners and workers both see their purchasing power rise ------------------------------------------------------------------------------------------------------------------------- 38. Which of the following statements best describes the He theory as applied to immigration? a. the purchasing power of capital and labor won’t change unless the immigration is skilled-labor b. the purchasing power of capital and labor won’t change because the K-L imbalances become corrected c. the K-L ratios in the He diagram adjust to make laborers benefit in the LR d. the K-L ratios in the He diagram rise to make machinery and equipment more productive ---------------------------------------------------------------------------------------------------------------------- 39. Suppose we introduce a scenario that says immigration mostly consists of high-skilled labor and impacts the Home country. Which of the following statements is incorrect? a. in the SR, the VMPL curve in manufacturing will pivot SW b. in the SR, the VMPL curve in agriculture should not pivot necessarily c. in the SR, workers may see their purchasing power fall d. in the LR, capital-owners will get more productive and see their purchasing power rise ---------------------------------------------------------------------------------------------------------------------- 40. Which group, based on our lectures, is most likely to favor immigration policies for all intention purposes? a. workers in the LR b. workers in the SR c. capital-owners in the LR d. all of the above e. none of the above ---------------------------------------------------------------------------------------------------------------------- Figure X 41. Consider Figure X. Which of the following statements is true? a. this is the diagram to describe a quota program b. this is a diagram to describe a tariff program c. this is the diagram to describe a net importing country d. none of the above are correct e. all of the above are correct (not including d) ---------------------------------------------------------------------------------------------------------------------- 42. Consider Figure X. The point Q’’ represents a. an outcome that’s gone too far in production b. an outcome that’s not gone far enough in production c. producer surplus d. consumer surplus e. the amount of imports ---------------------------------------------------------------------------------------------------------------------- 43. Consider Figure X. Based on our discussions in class, which of the following statements is most true? a. This diagram is likely used by the Federal Trade Commission to justify a lot of programs b. This diagram is likely used by the Federal Trade Commission to encourage mergers and acquisitions c. This diagram is likely used by the International Trade Commission to justify tariff programs d. This diagram is likely used by the International Trade Commission to justify quota licensing ---------------------------------------------------------------------------------------------------------------------- 44. True or False: More corruption in government is likely to make the net effects of a quota program worse by an area equal to (a+d) a. True b. False ---------------------------------------------------------------------------------------------------------------------- 45. One of our main assumptions when examining the impact of immigration on wages in the long-run was a. based on the fact that capital was stuck in one sector b. based on free trade enabling immigration to capture H1B Visas c. based on the fact that both capital and labor can adjust freely between sectors d. based on the fact that both capital and labor cannot adjust freely between sectors ----------------------------------------------------------------------------------------------------------------------

Answer 1