Reference no: EM133196418

Assignment:

Problem 1. Below, you are provided with the demand and supply curves fort-shirts and the world price of at-shirt. You will use this information to identify whether the country imports or exports t-shirts. You will also examine the impact of a tariff on the amount of consumer and producer surplus that results in this market.

1. Suppose that the worldprice of at-shirt is $20. Does this country import orexport t-shirts? How many?

2. Suppose that this country engages in trade.

a) Calculate the amount of consumer surplus that results in this market.

b) Calculate the amount of producer surplus that results in this market.

3. Suppose that the government imposes a $10 import tariffon t-shirts.

a) How many t-shirts do domestic consumers purchase after this import tariffis imposed?

b) How many t-shirts do domestic suppliers sell after this import tariffis imposed?

c) How many t-shirts does this county import?

d) Calculate the amount of consumer surplus that results in this market.

e) Calculate the amount of producer surplus that results in this market.

f) Calculate the amount of government tax revenue generated by the import tariff.

g) Calculate the amount of dead weight loss that results from the imposition of the tariff.

Problem 2. Below, you are provided with three years of data on the quantities that are produced of two goods and the market price of each. You will use this data to calculate Nominal GDP and Real GDP.

Bananas and Mango are produced in Philippines. Manyother final goods and services are produced in Philippines, but we will assume that Bananas and Mango are the only two final goods produced in this country. The table below provides the number of bananas and mango that are producedin Philippines in three different years. The table also provides the price of a banana and the price of a mango in each year.

1) What is the value ofNominal GDP in hilippines in 2015, 2016 and 2017?

2) Treating 2015 as the base year, calculate the value of Real GDP in Philippines in 2015, 2016 and 2017?

Problem 3

Below, you are provided with two years of data on the quantities of two goods that the average, urban family of four consumes and the market price of each. You will use these data to calculate the Consumer Price Index (CPI) and inflation rate.

Cheese and Chocolate are two goods that are consumed in Holland. Many other final goods and services are consumed in Holland, but for simpli city, we will assume that Cheese and Chocolate are the only two final goods consumed in the country. The table below provides the quantity of Cheese and Chocolate that are consumed by the average, urban family off our in Holland in two different years.The table also provides the price of a Cheese and the price of chocolate in each year.

Suppose that 2016 is the base year.

1) Calculate the CPI in 2016 and 2017.Round your answer to the nearest one-hundredth.

2) Calculate the 2017 inflation rate. Round your answer tothe nearest one-tenthof one percent.

3) "Explain why economists usually oppose controls on prices".