QUESTION 1 Suppose Ghana imports apples from South Africa. The world price for apples is $2 per pound. However, the domestic price for apples in Ghana is $3 per pound. What is the Nominal Protection Coefficient (NPC)? O 2 0 3 O 1.5 O 0.67 0 6 QUESTION 2 Suppose Ghana imports apples from South Africa. The world price for apples is $2 per pound. However, the domestic price for apples in Ghana is $3 per pound. Ghana is a small country and does not influence the world price of apples. However, the government of Ghana wants consumers to pay a price for apples that is exactly equal to the world price. What pricing policy can the government implement so that domestic consumers pay exactly $2 per pound for apples? O Offer a $1 subsidy to each consumer for every pound of apples purchased The government imports apples from South Africa at $2 per pound and sells them directly to consumers at $2 per pound. O Both a and b O None of the aboveQUESTION 3 5 points Save Answer Suppose Cote d'Ivoire (a country in West Africa) produces cassava but does not trade this food crop with any other country. Any cassava produced in Cote d'Ivoire is consumed within the country. Figure 1 below depicts the demand and supply curves for cassava in Cote d'Ivoire. Cassava quantity is represented on horizontal axis and cassava price is on the vertical axis. Carefully examine Figure 1 and use it to answer questions 3 - 7 that follow. All numbers should be rounded to the nearest integer (i.e. 5) You do not need to include the units (kg, $) Figure 1: Demand and Supply of Cassava Price ($) So 2 Do Quantity (kg) Question 3: What is the equilibrium quantity of cassava (in kilograms)? QUESTION 4 5 points Save Answer What is the equilibrium price of cassava in $? (only write the number; do not include the $ symbol) QUESTION 5 10 points Save Answer Calculate the producer surplus. QUESTION 6 10 points Save Answer Calculate the consumer surplus. QUESTION 7 10 points Save Answer Calculate the total surplus.QUESTION 8 10 points Save Answer Now suppose other countries produce cassava and Cote d'Ivoire can import cassava at the world price (Pw) which is lower than the autarky (i.e. economic independence or self-sufficiency) price (Pa). Figure 2 below depicts the demand and supply curves for cassava in Cote d'Ivoire with imports. Quantity is represented on horizontal axis and price is on the vertical axis. Carefully examine Figure 2 and answer questions 8-11 that follow: Note: Qa is the Autarky quantity, Qs is the quantity of cassava supplied by producers in Cote d'Ivoire, and Qd is the quantity of cassava demanded by consumers in Cote d'Ivoire after import. Figure 2: Demand and Supply of Cassava in Cote d'Ivoire with Imports Price ($) So Pa a C Pw Do 0 Qs Qa Qa Quantity (kg) Question 8: Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the producer surplus if Cote d'Ivoire imports cassava at the world price (Pw)? Select all that apply. O a Ob O c O d Of QUESTION 9 10 points Save Answer Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the consumer surplus if Cote d'Ivoire imports cassava at the world price (Pw)? Select all that apply. O a O c O d De Of QUESTION 10 10 points Save Answer Using Figure 2, what is the effect on consumers in Cote d'Ivoire when cassava can be purchased at the world price (Pw)? Consumer surplus increases O Consumer surplus stays the same Consumer surplus decreasesQUESTION 9 Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the consumer surplus if Cote d'Ivoire imports cassava at the world price (Pw)? Select all that apply. 0 a Ob O c O d Of QUESTION 10 Using Figure 2, what is the effect on consumers in Cote d'Ivoire when cassava can be purchased at the world price (Pw)? O Consumer surplus increases O Consumer surplus stays the same O Consumer surplus decreases QUESTION 11 Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the change in total surplus if Cote d'Ivoire imports cassava at the world price (Pw)? Select all that apply. 0 a Ob O c O d De Of