Chap017

Chap017 - Chapter 17 - Economic Integration Chapter 17...

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Chapter 17 - Economic Integration Chapter 17 Economic Integration Multiple Choice Questions FIGURE 1 1. Figure 1 pertains to good X for country A, where DA is the demand for X by A's consumers, SA is the supply curve of X from A's home producers, SB is the horizontal supply curve of X to country A from country B, SC is the horizontal supply curve of X to country A from country C, and S'B and S'C are the horizontal supply curves from B and C, respectively, with a tariff in place. With the tariffs in place for both countries B and C, imports of good X into country A are represented by distance __________. a. OQ6 b. Q1Q6 c. Q2Q5 D . Q3Q4 17-1
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Chapter 17 - Economic Integration 2. Figure 1 pertains to good X for country A, where DA is the demand for X by A's consumers, SA is the supply curve of X from A's home producers, SB is the horizontal supply curve of X to country A from country B, SC is the horizontal supply curve of X to country A from country C, and S'B and S'C are the horizontal supply curves from B and C, respectively, with a tariff in place. From this initial situation where country A's tariff is applied to both countries B and C, suppose that country A now forms a customs union with country B. With this customs union in place, imports into country A are distance __________. a. Q2Q5, all of which constitute trade diversion from the non-customs union country B . Q2Q5, only part of which constitute trade diversion from the non-customs union country c. Q3Q4, all of which constitute trade diversion from the non-customs union country d. Q1Q6, all of which constitute trade diversion from the non-customs union country 3. In Figure 1 pertaining to good X for country A (where DA is the demand for X by A's consumers, SA is the supply curve of X from A's home producers, SB is the horizontal supply curve of X to country A from country B, SC is the horizontal supply curve of X to country A from country C, and S'B and S'C are the horizontal supply curves from B and C, respectively,
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Chap017 - Chapter 17 - Economic Integration Chapter 17...

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