3. (20 points) true or false. explain your answers in clearly

 

 

 

  1. (30 points) Country H, which is small, exports good X.  Its excess supply curve is given by P=100+4X.  The world price ratio Px/Py is P=200.  It is suggested, but not required, that you use a graph to help answer the questions below.  (Note that answers may be fractions of a unit.)

 

    1. Find the free trade equilibrium quantity of exports.
    2. What is the producer surplus in this equilibrium?
    3. Country H elects to offer a 25% subsidy to exports of X.  What is the equilibrium quantity of exports with this subsidy?
    4. What is the producer surplus after the subsidy?
    5. What is the government expenditure on the subsidy?
    6. What is H’s deadweight loss due to the subsidy?

 

 

 

 

  1. (30 points) Country H, which is large, exports good X.  Its excess supply curve is given by P=100+4X.  The world’s excess demand curve for X is 600-2X.  It is suggested, but not required, that you use a graph to help answer the questions below.  (Note that answers may be fractions of a unit.)

 

    1. Find the free trade equilibrium quantity and price of exports.
    2. What is the producer surplus in this equilibrium?
    3. Country H elects to offer a 25% subsidy to exports of X.  What is the equilibrium quantity of exports with this subsidy?
    4. What is the producer surplus after the subsidy?
    5. What is the government expenditure on the subsidy?
    6. What is the deadweight loss due to the subsidy?
    7. Calculate the “Terms of Trade” loss for H due to the subsidy.

 

 

 

  1. (20 points) True or false.  Explain your answers in clearly written paragraphs.  Quality of explanation determines grade.

 

    1. One possible development strategy for a country is to simultaneously engage in import substitution and export-driven growth.
    2. A country that offers an export subsidy for good X must also impose an import tariff for good X.

 

 

 

 

 

  1. (20 points) Water sold in small plastic bottles produces waste that contaminates the environment.  Suppose the U.S. government passed strict new laws that levied special taxes on water sold in plastic bottles.  One country, Fiji, has a comparative advantage in producing bottled water, much of which is consumed in the U.S. As a trade economist, what is your perspective on the impact of this law on the U.S. and on Fiji?  Thinking beyond trade issues, what is your economic perspective on the law? 

 

 

Answer this question in a short essay (say, approximately 500 words).  

Premium Custom Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.