A small country can import a good at a world price of 10 per unit. The

1.【单选题】Which of the following statements is NOT correct?( ) 选项： A、Production subsidy is different from export subsidy in that it provides a payment based on all production regardless of where it is sold. B、Production subsidy requires more expenditure by the government than export subsidy. C、Production subsidy will effectively raise the price that the producer receives for each unit of the good produced and sold. D、Production subsidy will raise the market price in the exporting country.

2. The curve that shows the relationship between the price of a good and the quantity consumers are will to purchase at each price is the 选项： A、 The consumption curve B、 The demand curve C、 The supply curve D、 The production possibility curve

3.Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good 选项： A、supply curve of good B leftward. B、leftward. B) demand curve for good B rightward. C、shifts the A) demand curve for good D、supply curve of good B rightward.

4.Which of the following is true about the demand curve? 选项： A: A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience. B: A demand curve indicates the cost per unit of output in the long run. C: A demand curve indicates the cost per unit of output in the short run. D: In a monopoly, the demand curve does not indicate the total market demand resulting from different prices. E: A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.

5.Which one of the following would cause the supply curve for a good to shift to the left (inwards from the origin)?选项： A:An increase in the price of the good; B:An increase in the price of a substitute in supply; C:A fall in production costs of the good; D:An increase in the price of a complement in production

6.Producer surplus is most accurately defined as the.（） A. difference between the opportunity cost of producing the last unit of a good or service and the price received for that unit. B. sum of the differences between the marginal benefit and the marginal cost for each unit of good produced and consumed over the total number of units produced and consumed. C. sum of the differences between the price received for each unit of good produced and the opportunity cost of each unit.

7.If the home country's government grants a subsidy on a domestically produced good, domestic producers tend to: ( )选项： A:Capture the entire subsidy in the form of higher profits B:Increase their level of production C:Reduce wages paid to domestic workers D:Consider the subsidy as an increase in production cost

8.Which one of the following would cause the supply curve for a good to shift to the right (outwards from the origin)? 选项： A、a fall in the price of the good B、an increase in the demand for the good C、a fall in production costs of the good D、the imposition of a minimum price

9. The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units? 选项： A、 4 units of good X per unit of good Y B、 3 units of good X per unit of good Y C、 1/4 unit of good X per unit of good Y D、 There is no opportunity cost when moving from one point to another along a production possibilities frontier.

10.A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country’s government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. If the government auctions the quota licenses, calculate the revenue collected by the government. 选项：A、$40 millionB、$70 millionC、$200 millionD、$240 million

11.Which one of the following would cause the supply curve for a good to shift to the right (outwards from the origin)?A.A fall in the price of the good B.An increase in the demand for the goodC.A fall in production costs of the good D.The imposition of a minimum price

12.In a competitive market, if both demand and supply curves are linear, then a per unit tax of $10 will generate exactly the same deadweight loss as a per unit subsidy of $10.选项： A:对 B:错

13.The learning curve is representative of the ________. 选项： A: per unit cost of output in the long run B: drop in the average per-unit production cost that comes with accumulated production experience C: number of units the market will buy in a given time period, at different prices that might be charged D: total market demand resulting from different prices E: per unit cost of output in the short run

14.The equilibrium prices and quantities established after trade are fully determinate if we know: 选项： A:The location of all countries' indifference curves B:The shape of each country's production possibilities curve C:The comparative costs of each trading partner D:The strength of world supply and demand for each good

15.A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. The quota on T-shirts causes domestic producers to 选项： A、gain $5 million. B、lose $5 million. C、gain $25 million. D、gain $30 million.

16.The equilibrium prices and quantities established after trade are fully determinate if we know: _______________. 选项： A:The location of all countries' indifference curves; B:The shape of each country's production possibilities curve; C:The comparative costs of each trading partner; D:The strength of world supply and demand for each good

17.Under free trade, a large country produces 1 million leather bags per year and imports another 2 million bags per year at the world price of $60 per bag. Assume that the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million.Calculate the tariff revenue collected by the domestic government. 选项：A、$13.5 millionB、$4 millionC、$10 millionD、$8 million

18.If selling price is per unit and variable costs are per unit, the contribution margin is: 选项： A: per unit. B:0. C:.43 per unit. D: per unit.

19.A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country’s government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. The quota on T-shirts causes domestic consumers to: 选项：A、gain $7 million.B、lose $7 million.C、lose $70 million.D、lose $77 million.

20. A market demand curve measures 选项： A、 how much a consumer is willing to pay for an additional unit of the good. B、 the marginal social benefit of an additional unit of the good. C、 the marginal social cost of an additional unit of the good. D、 Both answers A and B are correct.

21.76) The Metal Shop produces 1.7 million metal fasteners a year for industrial use. At this level of production, its total fixed costs are $486,000 and its total costs are $791,000. The firm can increase its production by 5 percent, without increasing either its total fixed costs or its variable costs per unit. A customer has made a one-time offer for an additional 50,000 units at a price per unit of $.165. Should the firm sell the additional units at the offered price? Why or why not? 选项： A:A) Yes; The offered price is less than the marginal cost. B:B) Yes; The offered price is equal to the marginal cost. C:C) No; The offered price is less than the marginal cost. D:D) Yes; The offered price is greater than the marginal cost. E:E) No; The offered price is greater than the marginal cost.