Loose Leaf Microeconomics with Connect
10th Edition
ISBN: 9781259693953
Author: David C Colander
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 3IP
To determine
Explain whether the trader in the model provide a different view of trade than the one that would get from a model that did not include the trader.
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Explain what is Standard Trade Model.
The model (graph) below represents a small country trade of good X after
the government decided to impose tariffs on import. Consider the case of
trade after tariffs. Please answer the following questions:
What area(s) represent the gain of surplus to producers?
What area(s) represent government revenue?
What area(s) represent the loss of surplus to consumers?
What area(s) represent consumers surplus?
What's the quantity imported?
Describe the impact of a tariff on social welfare. Refer to the graph to
support your answer.
A
Qs
Qs,t
QD₂t Q₂
Quantity
Edit View Insert Format Tools Table
Price
Pw+t
Pw
G
C
Which of the following is predicted by the models of intraindustry trade we have studied?
Countries will export what they have a relatively low opportunity cost of producing and import what they
have a high opportunity cost of producing.
Trade will either help consumers or help producers in a given industry but never both.
Trade may decrease the price and increase the variety in the same industry for two countries that begin to
trade.
Chapter 9 Solutions
Loose Leaf Microeconomics with Connect
Ch. 9.1 - Prob. 1QCh. 9.1 - Prob. 2QCh. 9.1 - Prob. 3QCh. 9.1 - Prob. 4QCh. 9.1 - Prob. 5QCh. 9.1 - Prob. 6QCh. 9.1 - Prob. 7QCh. 9.1 - Prob. 8QCh. 9.1 - Prob. 9QCh. 9.1 - Prob. 10Q
Ch. 9 - Prob. 1QECh. 9 - Prob. 2QECh. 9 - Prob. 3QECh. 9 - Prob. 4QECh. 9 - Prob. 5QECh. 9 - Prob. 6QECh. 9 - Prob. 7QECh. 9 - Prob. 8QECh. 9 - Prob. 9QECh. 9 - Prob. 10QECh. 9 - Prob. 11QECh. 9 - Prob. 12QECh. 9 - Prob. 13QECh. 9 - Prob. 14QECh. 9 - Prob. 15QECh. 9 - Prob. 16QECh. 9 - Prob. 17QECh. 9 - Prob. 18QECh. 9 - Prob. 19QECh. 9 - Prob. 1QAPCh. 9 - Prob. 2QAPCh. 9 - Prob. 3QAPCh. 9 - Prob. 4QAPCh. 9 - Prob. 5QAPCh. 9 - Prob. 1IPCh. 9 - Prob. 2IPCh. 9 - Prob. 3IPCh. 9 - Prob. 4IPCh. 9 - Prob. 5IP
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Similar questions
- The model (graph) below represents a small country trade of good X after the government decided to impose tariffs on import. Consider the case of trade after tariffs. Please answer the following questions: • What area(s) represent the loss of surplus to producers? What area(s) represent government revenue? • Describe the impact of a tariff on social welfare. Refer to the graph to support your answer. Pwe Pw D Ost Quantity Qs Pricearrow_forwardFrom the trade model, we found that in most cases, trade creates value. Where do we see that conclusion in the Supply and Demand model? You should be able to answer this in a few sentences.arrow_forwardTrade theory cannot account for the empirical fact of intra-industrial trade (i.e. that countries import and export the same type of good). True Falsearrow_forward
- Does intra-industry trade contradict the theory of comparative advantage?arrow_forwardWhat economic impact have pandemics such as COVID-19, had on global trade? Include one example of correct use of all of the following in the short paragraph explaining what economic impact have pandemics such as COVID-19, had on global trade? Comma, Colon, Semicolons, Exclamations, Quote Marks, Apostrophes, Parenthese, Dashes, Hyphens.arrow_forwardThis question is about International Trade. The question is under Chapter 3 (The Specific-Factor Model). Kindly select the right option and help explain. Thank you very much.arrow_forward
- Explain how is the production structure (i.e. which goods are produced) affected in each country by opening up to trade. Is this consistent with the empirical evidence we observe in reality? How can this model be modified to produce a less stark result?arrow_forwardwhich of the four options best represents specialization and its relationship with trade? absolute advantage economic crises comparative advantage all the abovearrow_forwardThe main advantage of trade between two countries is that A) trade makes both countries more self-sufficient. B) employment in both countries will increase. C) both countries can produce beyond their previous resource and productivity constraints. D) both countries can consume beyond their previous resource and productivity constraints.arrow_forward
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