Question 11 (5 points) Listen (Figure: The Market for Apple Computers in the United States) Use Figure: The Market for Apple Computers in the United States. Assume that PA is the autarky price and Py is the world price. Consumer surplus without international trade would be area: Price Domestic supply W PW 7 PA A Domestic demand CT QA QT Quantity Exports ( a) w. ( b) Y. O c ) W + X. O d) W + X + E.Question 12 (5 points) Listen A tax on imports of foreign goods is called a(n): ( a) tariff . O b) subsidy. O c) export restriction. ( d) import quota.Question 13 (5 points) Listen Which statement BEST describes the income effect of a price increase? (a) The price of tortilla chips increases, so Emma buys more potato chips. O b) Emma's condo fees increase, so she cancels her subscription to Time magazine. ( c) The price of baguettes increases, so Emma buys more bread. ( d) The tuition at university increases, so Emma attends a trade school.Question 14 (5 points) Listen Edward consumes only yogurt and brie, and he is on his highest possible indifference curve. Bundle A (4 yogurts and 2 brie) and bundle B (3 yogurts and 3 brie) are on this indifference curve. Between points A and B, what is Edward's marginal rate of substitution of yogurt for brie? ( a) 2 Ob) 1.33 Oc 1 O d) 3Question 15 (5 points) Listen All points inside the production possibility frontier represent: (a) inefficient production points that are attainable without added opportunity costs. O D) infeasible production points that can, however, be attained through economic growth. (c) production points that the economy will eventually reach through economic growth. (d) efficient production points that economies strive to reach.Question 16 (5 points} all (Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. If the economy produces two planes per period= it can also produce, at most, trains per period. Table: Production Possibilities Schedule I Alternatives A B C D E F Planes Produced 0 l 2 3 4 5 Trains Produced 3U 23 24 13 10 Question 17112.5 points} all If marginal cost is LESS than average total cost, then cost is O a) marginal; necessarily decreasing O b] average total; increasing 0 C} marginal; necessarilyr increasing 0 d} average total; decreasing Question 18 {2.5 points} (Table: Total Product and Marginal Product for Knick Knacks} Use Table: Total Product and Marginal Product for Knick Knacks. The marginal product of the fourth worker is units per period. Table: Total Product and Marginal Product for Knick Knacks Labor per Day Number of Knick Knacks {per period] Question 19 (5 points) Listen The trade-off between equity and efficiency is seen in the fact that: O a) policies that promote equity often come at a cost of decreased efficiency. O b) allocating resources fairly may increase efficiency. O c) an efficient allocation of resources may lead to an outcome that is least favorable. ( d) allocating resources fairly may lead to efficiency.Question 20 (5 points) Listen When Brazil engages in trade with Germany, ( a) Germany will be worse off because Brazil has greater economic power. (b) both Germany and Brazil will be better off. (c) both Germany and Brazil will be worse off. O d) Brazil will be worse off because wages in Germany are higher.Question 21 {5 points} an In considering price controls, an effective price ceiling is one in which: 0 3] increases the suppl'g,r of housing. 0 bl producer surplus increases. 0 Cl consumer surplus increases. 0 Cl} a deadweight loss is created. Question 22 (5 points) E Listen (Figure: Price Control in the Market for Gasoline) Use Figure: Price Control in the Market for Gasoline. Dramatic increases in the price of gasoline have led the government to impose a price ceiling. One effective price ceiling would be the price indicated at point : creating a equal to the difference between points Price per gallon a Supply e b K C h Demand Quantity (gallons per week) a) d; surplus; e and h O b) b; shortage: f and e O c) d: shortage; i and h O d) b; surplus: f and e