Deck 15: Income Distribution

Question 1

A situation in which a country does not trade with other nations is called

A) inertia.
B) inefficient.
C) autarky.
D) protectionist.
E) scarcity.

Answer 1

autarky.

Question 2

If only two products are produced in an economy,corn and cars,the opportunity cost of producing a car equals the

A) gain in cars divided by the loss in corn.
B) loss in corn divided by the gain in cars.
C) opportunity cost of producing a bushel of corn.
D) gain in corn divided by the loss in cars.
E) loss in cars divided by the gain in corn.

Answer 2

loss in corn divided by the gain in cars.

Question 3

Which of the following is NOT a factor that leads to comparative advantage?

A) Climate.
B) Tariffs.
C) Workers' skills and education.
D) Culture.
E) Natural resources.

Answer 3

Tariffs.

Question 4

A closed economy is one that

A) relies on a market system to allocate scarce resources.
B) relies on central planning to allocate scarce resources.
C) has a flexible exchange rate.
D) trades with other countries.
E) does not trade with other countries.

Question 5

Specialization according to ____________________ advantage enables ____________________ partners in international trade to be better off.

A) absolute;a few
B) absolute;all
C) comparative;no
D) comparative;a few
E) comparative;all

Question 6

As more and more of a good is produced,the opportunity cost of producing additional units of the good

A) increases.
B) decreases.
C) remains constant.
D) becomes negative.
E) approaches zero.

Question 7

An open economy is one that

A) relies on a market system to allocate scarce resources.
B) relies on central planning to allocate scarce resources.
C) has a flexible exchange rate.
D) trades with other countries.
E) does not trade with other countries.

Question 8

Adam Smith stated that a ____________________ market provides a ____________________ possible degree of specialization,so by providing a worldwide market,international trade allows for ____________________ gains from specialization.

A) larger;smaller;no
B) larger;greater;smaller
C) larger;greater;greater
D) smaller;smaller;smaller
E) smaller;greater;greater

Question 9

A country that trades with other countries is called a(n)___________ economy.

A) structural
B) nominal
C) centrally planned
D) open
E) closed

Question 10

If only two products are produced in an economy,wheat and wine,the opportunity cost of producing a gallon of wine equals the

A) gain in wine divided by the loss in wheat.
B) loss in wheat divided by the gain in wine.
C) opportunity cost of producing a wine.
D) gain in wheat divided by the loss in wine.
E) loss in wine divided by the gain in wheat.

Question 11

An autarky is

A) a trade deficit.
B) a trade surplus.
C) a protectionist policy.
D) an open economy.
E) a closed economy.

Question 12

The production possibilities curve for a two-good economy is a diagram that shows the ____________ amount of one good that can be produced at ____________________ level of production of the other good.

A) maximum;the minimum
B) minimum;the maximum
C) maximum;the maximum
D) maximum;every possible
E) minimum;every possible

Question 13

If only two products are produced in an economy,corn and cars,the opportunity cost of producing a bushel of corn equals the

A) gain in cars divided by the loss in corn.
B) loss in corn divided by the gain in cars.
C) opportunity cost of producing a car.
D) gain in corn divided by the loss in cars.
E) loss in cars divided by the gain in corn.

Question 14

A country that does not trade with other countries is called a(n)___________ economy.

A) structural
B) nominal
C) centrally planned
D) open
E) closed

Question 15

A production possibilities curve has an outwardly-bowed shape because of the

A) scarcity problem.
B) principle of increasing opportunity cost.
C) cost-benefit principle.
D) equilibrium principle.
E) principle of comparative advantage.

Question 16

If only two products are produced in an economy,wheat and wine,the opportunity cost of producing a bushel of wheat equals the

A) gain in wine divided by the loss in wheat.
B) loss in wheat divided by the gain in wine.
C) opportunity cost of producing a bottle of wine.
D) gain in wheat divided by the loss in wine.
E) loss in wine divided by the gain in wheat.

Question 17

Autarky is a situation in which a country

A) does not trade with other nations.
B) is an open economy.
C) produces a combination of goods and services inside the production possibilities curve.
D) produces a combination of goods and services outside the production possibilities curve.
E) consumes a combination of goods and services outside the production possibilities curve.

Question 18

All possible combinations of goods and services that a country's citizens might feasibly consume are called

A) production possibilities.
B) consumption possibilities.
C) the consumption function.
D) the marginal propensity to consume.
E) life-cycle consumption.

Question 19

Consumption possibilities are

A) the quantity of goods and services that would be available for consumption if scarcity were eliminated.
B) the quantity of goods and services that would be available for consumption if trade were prohibited.
C) the quantity of goods and services that one country imports from another country.
D) all possible combinations of goods and services that a country's citizens might feasibly produce.
E) all possible combinations of goods and services that a country's citizens might feasibly consume.

Question 20

The consumption possibilities for a closed economy are __________ its production possibilities,and the consumption possibilities for an open economy are __________ its production possibilities.

A) typically greater than;equal to
B) typically less than;typically greater than
C) equal to;equal to
D) equal to;typically greater than
E) typically greater than;typically less than

Question 21

The losers from trade are the __________ and the ___________.

A) consumers of imported goods;producers of exported goods
B) consumers of imported goods;producers of imported goods
C) consumers of imported goods;consumers of exported goods
D) consumers of exported goods;producers of exported goods
E) consumers of exported goods;producers of imported goods

Question 22

The following graph shows annual production and consumption possibilities for North Eastwood,a country in which only grapes and bread are consumed.
If North Eastwood has a closed economy,the maximum amount of grapes its citizens can consume is __________ tons per year,and the maximum amount of bread its citizens can consume is __________ tons per year.

A) 250;500
B) 350;175
C) 400;200
D) 175;350
E) 500;250.

Question 23

The world price is the price at which

A) the supply of domestic goods and services equals the demand for goods and services on international markets.
B) the demand for domestic goods and services equals the supply of goods and services on international markets.
C) consumption goods and services trade for production goods and services on international markets.
D) a good or service is traded on international markets.
E) a good or service is traded on domestic markets.

Question 24

Producers of imported goods are __________ as a result of trade and producers of exported goods are ___________ as a result of trade.

A) winners;losers
B) winners;winners
C) losers;winners
D) losers;losers
E) neither winners nor losers;neither winners nor losers

Question 25

Consumers of imported goods are __________ as a result of trade and consumers of exported goods are ___________ as a result of trade.

A) winners;losers
B) winners;winners
C) losers;winners
D) losers;losers
E) neither winners nor losers;neither winners nor losers

Question 26

The residents of North Eastwood could increase their consumption possibilities from the line passing through Point A to the line passing through Point B by

A) adopting new technologies.
B) specializing in grape production and then trading on the world market.
C) specializing in bread production and then trading on the world market.
D) producing the quantity shown by Point A or Point C and then trading on the world market.
E) producing the quantity shown by Point B and then trading on the world market.

Question 27

If the world price is less than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

A) stop consuming
B) stop producing
C) be self-sufficient in
D) become a net importer of
E) become a net exporter of

Question 28

Graphically,to maximize consumption,a country produces where the consumption possibilities curve

A) intersects the vertical axis.
B) intersects the horizontal axis.
C) just touches the production possibilities curve.
D) cuts across the production possibilities curve.
E) equals the preferred consumption combination.

Question 29

Under free trade,countries will __________ goods for which their closed-economy domestic price exceeds the world price and __________ goods for which their closed-economy domestic price is less than the world price.

A) export;import
B) export;export
C) import;export
D) import;import
E) export;not consume

Question 30

If trade is unrestricted,countries will __________ goods in which they have a comparative advantage and __________ goods in which they do not have a comparative advantage.

A) export;import
B) export;export
C) import;export
D) import;import
E) export;not consume

Question 31

The price at which a good or service is traded on international markets is called the ___________ price.

A) supply
B) demand
C) relative
D) world
E) production

Question 32

The following graph shows annual production and consumption possibilities for North Eastwood,a country in which only grapes and bread are consumed.
If North Eastwood has a closed economy and is producing 125 tons of bread,its citizens will be able to consume ___________ tons of grapes.

A) 100
B) 250
C) more than 250 but fewer than 350
D) 350
E) 500

Question 33

Producers of imported goods are __________ as a result of trade and consumers of exported goods are ___________ as a result of trade.

A) winners;losers
B) winners;winners
C) losers;winners
D) losers;losers
E) neither winners nor losers;neither winners nor losers

Question 34

Consumers of imported goods are __________ as a result of trade and producers of exported goods are ___________ as a result of trade.

A) winners;losers
B) winners;winners
C) losers;winners
D) losers;losers
E) neither winners nor losers;neither winners nor losers

Question 35

The consumption possibilities for a(n)____________ economy are equal to its production possibilities,while the consumption possibilities for a(n)______________ economy are typically greater than (and never less than)its production possibilities.

A) open;closed
B) closed;open
C) market;centrally planned
D) centrally planned;market
E) micro;macro

Question 36

The slope of the consumption possibilities curve shows relative

A) world prices,and can influence domestic decisions about what to produce.
B) domestic prices,and can influence domestic technological change.
C) domestic opportunity cost,and the existence of comparative advantage.
D) marginal utilities,and can influence consumption combinations.
E) marginal utilities,and the existence of comparative advantage.

Question 37

According to the comparative advantage model of trade,to maximize its gains from trade,a nation should

A) maximize net exports (or its trade surplus).
B) export products in which it has a comparative advantage.
C) export as many products as possible by subsidizing domestic producers that could not otherwise compete with foreign producers.
D) create jobs by subsidizing the industries that employ the largest number of workers.
E) subsidize the purchase of imports in order to achieve the highest level of total consumption.

Question 38

The winners from trade are the __________ and the ___________.

A) consumers of imported goods;producers of exported goods
B) consumers of imported goods;producers of imported goods
C) consumers of imported goods;consumers of exported goods
D) consumers of exported goods;producers of exported goods
E) consumers of exported goods;producers of imported goods

Question 39

The workings of the free market ensure that goods will be produced where the opportunity cost is the ____________ and traded to countries that ___________ have a comparative advantage in the good.

A) highest;do
B) highest;do not
C) highest;may or may not
D) lowest;do
E) lowest;do not

Question 40

If the world price is greater than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

A) stop consuming
B) stop producing
C) be self-sufficient in
D) become a net importer of
E) become a net exporter of

Question 41

If a tariff is placed on a good,the domestic price of the good __________,domestic production of the good ___________,and domestic consumption of the good ___________.

A) increases;increases;increases
B) increases;increases;decreases
C) increases;decreases;decreases
D) decreases;decreases;decreases
E) decreases;increases;increases

Question 42

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30.In equilibrium,when this economy is closed to trade,the quantity of shoes demanded domestically equals __________,and when this economy opens to trade,the quantity of shoes demanded domestically equals ___________.

A) 40;35
B) 40;45
C) 35;40
D) 45;40
E) 45;35

Question 43

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a tariff of $4 per pair is placed on shoe imports,the quantity of shoes produced domestically will change from __________ pairs with no tariff to __________ pairs with the tariff.

A) 35;40
B) 35;37
C) 40;35
D) 40;37
E) 37;40

Question 44

A legal limit on the quantity of a good that may be imported is called a

A) tariff.
B) quota.
C) protection limit.
D) capital inflow limit.
E) capital outflow limit.

Question 45

A tax imposed on an imported good is called a

A) tariff.
B) quota.
C) protection tax.
D) capital inflow.
E) capital outflow.

Question 46

A quota is a

A) legal limit on the quantity of a good that may be imported.
B) legal limit on the price of a good that may be imported.
C) tax imposed on an imported good.
D) tax imposed on an exported good.
E) menu cost.

Question 47

If a quota is placed on a good,domestic producers of the good are __________ and domestic consumers of the good are ___________.

A) better off;better off
B) better off;not affected
C) better off;worse off
D) worse off;worse off
E) worse off;better off

Question 48

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30.In equilibrium,when this economy is closed to trade,the quantity of jeans demanded domestically equals __________,and when this economy opens to trade,the quantity of jeans demanded domestically equals ___________.

A) 32;36
B) 32;52
C) 52;82
D) 52;32
E) 32;82

Question 49

Why do politicians so often resist free trade and "globalization"?

A) Free trade does not benefit the economy as a whole.
B) Specific groups may not benefit from free trade.
C) Free trade does not benefit the global economy.
D) Free trade usually hurts the consumers.
E) Free trade usually leads to overproduction of resources.

Question 50

If a tariff is placed on a good,then imports of the good ___________,domestic production of the good __________,and domestic consumption of the good ____________.

A) increase;increases;increases
B) increase;increases;decreases
C) increase;decreases;decreases
D) decrease;decreases;decreases
E) decrease;increases;decreases

Question 51

International trade agreements are often controversial because

A) total economic surplus always decreases.
B) producers always gain at the expense of consumers.
C) consumers always gain at the expense of producers.
D) there will always be some groups in the economy that are hurt by these agreements.
E) governments appear to be the only winners.

Question 52

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a tariff of $4 per pair is placed on shoe imports,the quantity of shoes demanded domestically will change from __________ pairs with trade,but no tariff,to __________ pairs with trade and a tariff.

A) 40;43
B) 40;45
C) 43;40
D) 45;40
E) 45;43

Question 53

When a tariff is imposed on a good,the difference between the world price and the domestic price goes to ____________,but when a quota limits the importation of the good,the difference between the world price and the domestic price goes to ___________.

A) the government;private individuals or firms
B) the government;the government
C) the government;the market
D) private individuals or firms;the government
E) private individuals or firms;private individuals or firms

Question 54

A tariff is a

A) legal limit on the quantity of a good that may be imported.
B) legal limit on the price of a good that may be imported.
C) tax imposed on an imported good.
D) tax imposed on an exported good.
E) menu cost.

Question 55

If a tariff is placed on a good,domestic producers of the good are __________,domestic consumers of the good are ___________,and the government ____________ tax revenue.

A) better off;better off;gains
B) better off;better off;loses
C) better off;worse off;gains
D) worse off;worse off;gains
E) worse off;better off;gains

Question 56

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30.In equilibrium,when this economy is closed to trade,domestic jeans production equals __________,and when this economy opens to trade,domestic jeans production equals ___________.

A) 32;36
B) 32;52
C) 52;82
D) 52;32
E) 32;82

Question 57

If a quota is placed on a good,then imports of the good ___________,domestic production of the good __________,and domestic consumption of the good ____________.

A) increase;increases;increases
B) increase;increases;decreases
C) increase;decreases;decreases
D) decrease;decreases;decreases
E) decrease;increases;decreases

Question 58

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30.In equilibrium,when this economy is closed to trade,domestic shoe production equals __________,and when this economy opens to trade,domestic shoe production equals ___________.

A) 40;35
B) 40;45
C) 35;40
D) 45;40
E) 45;35

Question 59

The North American Free Trade Agreement between ____________________ was opposed by many Canadian politicians because they feared ____________________.

A) Canada,the United States,and Europe;international trade might increase
B) Canada,the United States,and the United Kingdom;Canadian workers might move to the United States
C) Canada,Japan,and Russia;Canadian firms might move to Japan
D) Canada,the United States,and Mexico;Canadian jobs might be lost
E) Canada,Mexico,and Cuba;Canadian tourists might stop going to Cuba

Question 60

If a quota is placed on a good,the domestic price of the good ____________,domestic production of the good ______________,and domestic consumption of the good ___________.

A) increases;increases;increases
B) increases;increases;decreases
C) increases;decreases;decreases
D) decreases;decreases;decreases
E) decreases;increases;increases

Question 61

The demand for laser printers in a country is given by D = 10,000 - 2P,where P is the price of a laser printer.Supply by domestic producers is given by S = 2,000 + 8P.If the world price of a laser printer equals $800 and this economy is open to trade,then this country will

A) export 2,000 laser printers.
B) export 3,000 laser printers.
C) neither import nor export laser printers.
D) import 2,000 laser printers.
E) import 3,000 laser printers.

Question 62

The demand for laser printers in a country is given by D = 10,000 - 2P,where P is the price of a laser printer.Supply by domestic producers is given by S = 2,000 + 8P.If the world price of a laser printer equals $500 and this economy is open to trade,then this country will

A) export 2,000 laser printers.
B) export 3,000 laser printers.
C) neither import nor export laser printers.
D) import 2,000 laser printers.
E) import 3,000 laser printers.

Question 63

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a quota of 6 pair of shoes is placed on shoe imports,the quantity of shoes demanded domestically will change from __________ pairs with no quota to __________ pairs with the quota.

A) 40;43
B) 40;45
C) 43;40
D) 45;40
E) 45;43

Question 64

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1 + 0.8P.Both demand (D)and supply (S)of soybeans are measured in millions of bushels.If the world price of soybeans equals $5 and this economy is open to trade,then this country will

A) export 1 million bushels of soybeans.
B) export 2 million bushels of soybeans.
C) neither import nor export soybeans.
D) import 1 million bushels of soybeans.
E) import 2 million bushels of soybeans.

Question 65

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100.In equilibrium,when this economy is closed to trade,domestic DVD player production equals __________,and when this economy opens to trade,domestic DVD player production equals ___________.

A) 180;260
B) 180;280
C) 260;180
D) 260;280
E) 280;260

Question 66

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1+ 0.8P.Both demand (D)and supply (S)of soybeans are measured in millions of bushels.If the world price of soybeans equals $2 and this economy is open to trade,then this country will

A) export 1 million bushels of soybeans.
B) export 2 million bushels of soybeans.
C) neither import nor export soybeans.
D) import 1 million bushels of soybeans.
E) import 2 million bushels of soybeans.

Question 67

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a quota of 50 units is placed on DVD player imports,the quantity of DVD players produced domestically will change from __________ with no quota to __________ with the quota.

A) 180;220
B) 180;260
C) 220;260
D) 260;180
E) 260;220

Question 68

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100.In equilibrium,when this economy is closed to trade,the quantity of DVD players demanded domestically equals __________,and when this economy opens to trade,the quantity of DVD players demanded domestically equals ___________.

A) 180;260
B) 180;280
C) 260;180
D) 260;280
E) 280;260

Question 69

If the economy in the diagram above is open to trade,the world price of oil is $20 per barrel,and the government places a $5 per-barrel tariff on oil imports,then this economy will __________ million barrels of oil.

A) import 7
B) import 9
C) import 16
D) export 9
E) export 7

Question 70

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a quota of 6 pairs is placed on shoe imports,the quantity of shoes produced domestically will change from __________ pairs with no quota to __________ pairs with the quota.

A) 35;40
B) 35;37
C) 40;35
D) 40;37
E) 37;40

Question 71

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a quota of 50 units is placed on DVD player imports,the quantity of DVD players demanded domestically will change from __________ with no quota to __________ with the quota.

A) 260;270
B) 260;280
C) 280;270
D) 280;260
E) 270;260

Question 72

The demand for laser printers in a country is given by D = 10,000 - 2P,where P is the price of a laser printer.Supply by domestic producers is given by S = 2,000 + 8P.If the world price of a laser printer equals $1000 and this economy is open to trade,then this country will

A) export 2,000 laser printers.
B) export 3,000 laser printers.
C) neither import nor export laser printers.
D) import 2,000 laser printers.
E) import 3,000 laser printers.

Question 73

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30 and this economy is open to trade.If a tariff of $10 per pair is placed on jeans imports,the quantity of jeans produced domestically will change from __________ pairs with no tariff to __________ pairs with the tariff.

A) 52;32
B) 32;52
C) 52;36
D) 36;52
E) 32;36

Question 74

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30 and this economy is open to trade.If a tariff of $10 per pair is placed on jeans imports,the quantity of jeans demanded domestically will change from __________ pairs with no tariff to __________ pairs with the tariff.

A) 52;82
B) 52;76
C) 82;76
D) 82;52
E) 82;36

Question 75

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a tariff of $50 per unit is placed on DVD player imports,the quantity of DVD players demanded domestically will change from __________ with no tariff to __________ with the tariff.

A) 260;270
B) 260;280
C) 280;270
D) 280;260
E) 270;260

Question 76

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a tariff of $50 per unit is placed on DVD player imports,the quantity of DVD players produced domestically will change from __________ with no tariff to __________ with the tariff.

A) 180;220
B) 180;260
C) 260;220
D) 260;180

Question 77

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30 and this economy is open to trade.If a quota of 40 pairs is placed on jeans imports,the quantity of jeans produced domestically will change from __________ pairs with no quota to __________ pairs with the quota.

A) 52;32
B) 32;52
C) 52;36
D) 36;52
E) 32;36

Question 78

The demand for soybeans in a country is given by D = 5 - 0.2P,where P is the price of a bushel of soybeans.Supply by domestic producers is given by S = 1+ 0.8P.Both demand (D)and supply (S)of soybeans are measured in millions of bushels.If the world price of soybeans equals $4 and this economy is open to trade,then this country will

A) export 1 million bushels of soybeans.
B) export 2 million bushels of soybeans.
C) neither import nor export soybeans.
D) import 1 million bushels of soybeans.
E) import 2 million bushels of soybeans.

Question 79

If the economy in the diagram above is open to trade and the world price of oil is $20 per barrel,then this economy will __________ million barrels of oil.

A) import 7
B) import 9
C) import 11
D) import 18
E) export 7

Question 80

The demand for jeans in a country is given by D = 100 - 0.6P,where P is the price of a pair of jeans.Supply by domestic producers is given by S = 20 + 0.4P.The world price of a pair of jeans equals $30 and this economy is open to trade.If a quota of 40 pairs is placed on jeans imports,the quantity of jeans demanded domestically will change from __________ pairs with no quota to __________ pairs with the quota.

A) 52;82
B) 52;76
C) 82;76
D) 82;52
E) 82;36