you don't have to do number 10

** Questions 5, 6 pertain to the information below. Consider our partial equilibrium analysis of an import tariff imposed by a small country. Consider the graph below. P X W PX +1 W PX Suppose the domestic Demand ("Dd\") is given by: X '1 and that domestic Supply (Sm) is given by: X 3. Also, suppose that the world equilibrium price of good X is P; 5. Given the world free trade price of P: and the country has allowed trade, but imposed a tariff of I per unit, how many units will be imported? a. XgX; b. XgX: c. XfXf d. XfX; e. XgX;i 6. What letters represent this country's tari revenue collected (in this market)? a. n b.mr. c.jn. d.m+n+r e.j 7. If a \"small\" country (i.e., one that has no inuence over the world price of the good it imports) moves 'om having an import tariff on good X to free trade (i.e., removing the import tariff on good X (that it indeed importsD, then in the market for good X a. the price domestic buyers pay for imports will only go down by part of the tariff. b. domestic producers will be better off. c. domestic buyers will be worse off. d. domestic consumers will lose more than the government and domestic producers (combined) will gain. e. there can be a net gain to the country. 8. Consider the following isoquant-isocost graphs. Which of the following can you say about them? Industry X Industry Y Y1 a. The production functions exhibit decreasing returns to scale. b. Good X is relatively capital intensive. c. The production functions exhibit constant returns to scale. d. The production functions exhibit increasing returns to scale. e. Good Y is relatively capital intensive. 9. Which of the following is the statement of the HeckscherOhlin Theorem? a. A change in output prices will lead to more-than-proportional changes in the same direction in the prices of inputs used intensively in the good's production. b. Opening trade will equalize factor prices across countries. c. A change in output prices will lead to more-than-proportional changes in the opposite direction in the prices of inputs used intensively in the good's production. d. A change in output prices will lead to less-than-proportional changes in the same direction in the prices of inputs used intensively in the good's production. e. A country has a comparative advantage in the good that makes relatively intensive use of that country's relatively abundant factor. 10. In the HeckshcerOhlin framework, suppose that the autarkic wage in cotmtry A is w = $20 and the autarkic rental price of capital is m = $40. In country 3 (with monetary values expressed in $ for purposes of comparison), the autarkic wage is W}: = $15 and the autarkic rental price of capital is r3 = $45. Also, suppose that good X is labor intensive and good Y is capital intensive. Then we can say that