Anh Tran Mai Minh 

Dashboard  My courses  BACHELOR  BBUS 12  PE_S1(2021-2022)DH47ISB-2  Tutorial quiz  In-class Quiz 3

Started on Friday, 22 October 2021, 9:58 AM

State Finished
Completed on Friday, 22 October 2021, 10:11 AM
Time taken 13 mins 1 sec
Grade 5.0 out of 10.0 (50%)

Question 1 Correct Mark 1.0 out of 1.0

Japan imposes a $300 per ton tariff on imported steel, raising the price charged in Japan to $1,000.
Using only this information, which of the following statements is correct?

Select one:
a. The world price for steel is $1,000.
b. The world price for steel is $1,300.
c. The world price for steel is $700. Correct

d. The world price for steel is $300.

The correct answer is: The world price for steel is $700.
Question 2 Correct Mark 1.0 out of 1.0

What happens to the total surplus in a market when the government imposes a tax?

Select one:
a. Total surplus increases by the amount of the tax.
b. Total surplus decreases. Correct

c. Total surplus increases but by less than the amount of the tax.
d. Total surplus is unaffected by the tax.

The correct answer is: Total surplus decreases.

Question 3 Correct Mark 1.0 out of 1.0

In analyzing international trade, we often focus on a country whose economy is small relative to the
rest of the world. We do so:

Select one:
a. in order to rule out the possibility of tariffs or quotas.
b. because it is impossible to analyze the gains and losses from international trade without making this
assumption.
c. All of the above are correct.
d. because then we can assume that world prices of goods are unaffected by that country's Correct
participation in international trade.

The correct answer is: because then we can assume that world prices of goods are unaffected by that country's
participation in international trade.
Question 4 Incorrect Mark 0.0 out of 1.0

For a good that is taxed, the area on the relevant supply­and­demand graph that represents
government's tax revenue is:

Select one:
a. a right triangle.
b. a triangle, but not necessarily a right triangle.
c. bounded by the supply curve, the demand curve, the effective price paid by buyers, and the Incorrect
effective price received by sellers.
d. smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax.

The correct answer is: smaller than the area that represents the loss of consumer surplus and producer surplus
caused by the tax.

Question 5 Incorrect Mark 0.0 out of 1.0

Denmark is an importer of computer chips, taking the world price of $12 per chip as given. Suppose
Denmark imposes a $5 tariff on chips. Which of the following outcomes is possible?

Select one:
a. Total surplus in the Danish chip market increases.
b. Danish consumers of chips become better off. Incorrect

c. More Danish-produced chips are sold in Denmark.

d. More foreign-produced chips are sold in Denmark.

The correct answer is: More Danish-produced chips are sold in Denmark.
Question 6 Incorrect Mark 0.0 out of 1.0

For any country that allows free trade,

Select one:
a. domestic quantity demanded is greater than domestic quantity supplied at the world price. Incorrect

b. both producers and consumers in that country gain when domestic products are exported, but both groups
lose when foreign products are imported.
c. the domestic price is equal to the world price.
d. domestic quantity demanded is equal to domestic quantity supplied at the world price.

The correct answer is: the domestic price is equal to the world price.

Question 7 Incorrect Mark 0.0 out of 1.0

Figure 8-2
The vertical distance between points A and B represents a tax in the market.

Refer to Figure 8-2. The loss of consumer surplus as a result of the tax is

Select one:
a. $3 Incorrect

b. $1.50
c. $4.50
d. $6

The correct answer is: $4.50

Question 8 Incorrect Mark 0.0 out of 1.0

Figure 8-2
The vertical distance between points A and B represents a tax in the market.

Refer to Figure 8-2. The amount of deadweight loss as a result of the tax is

Select one:
a. $5 Incorrect

b. $7.50
c. $2.50
d. $10

The correct answer is: $2.50

Question 9 Correct Mark 1.0 out of 1.0

Figure 9-5
The figure illustrates the market for tricycles in a country.

Refer to Figure 9-5. The horizontal line at the world price of tricycles represents the

Select one:
a. supply of tricycles from the rest of the world. Correct

b. surplus in the domestic tricycle market.

c. demand for tricycles from the rest of the world.
d. level of inefficiency in the domestic market caused by trade.

The correct answer is: supply of tricycles from the rest of the world.

Question 10 Correct Mark 1.0 out of 1.0

Taxes cause deadweight losses because taxes

Select one:
a. All of the above are correct. Correct

b. reduce the sum of producer and consumer surpluses by more than the amount of tax revenue.
c. prevent buyers and sellers from realizing some of the gains from trade.
d. cause marginal buyers and marginal sellers to leave the market, causing the quantity sold to fall.

The correct answer is: All of the above are correct.

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