DP Economics Questionbank

Using a supply and demand diagram with international trade values from the text, explain the statement that “The US imported 1200 million pounds (lb) of shrimp last year and produced 100 million pounds (lb) of shrimp domestically” (paragraph [2]) (Does not need to be to scale).

Assuming that there are no restrictions on the importing of bananas into Country A:

State the quantity of bananas which will be purchased each month in Country A.

Assuming that there are no restrictions on the importing of bananas into Country A:

Calculate the monthly expenditure on bananas imported into Country A.

Using a demand and supply diagram, explain why “the double effect of slowing growth in China and higher levels of production in Australia has driven the price of iron ore lower” (paragraph 1).

Explain how an increase in the costs of factors of production would affect the market price and output of a good.

Calculate the social surplus at the equilibrium market price.

Calculate the excess demand/excess supply (state which of these) at a price of $8.50.

Calculate the price at which excess demand of 18 widgets would result.

Calculate the equilibrium price and quantity per month.

Draw and label a curve that illustrates Fairland’s minimum wage on Figure 6.

Define the term excess demand indicated in bold in the text (paragraph [3]).

Calculate the resulting unemployment among the low-wage workers.

Plot and label the new supply curve on Figure 2.

Calculate the monthly equilibrium quantity of corn in Nissos.