DP Economics Questionbank

Using Figure 7, identify the equilibrium quantity being consumed following the imposition of the tariff.

Using Figure 7, calculate the change in consumer surplus as a result of Country B imposing the tariff.

Using Figure 6, identify the equilibrium price when Country B engages in free trade.

Using Figure 6, calculate the consumer surplus and the producer surplus when Country B engages in free trade.

Plot and label the production possibility curves for Country J and for Country H, assuming constant opportunity costs, on Figure 4.

Using Figure 7, calculate the welfare loss as a result of Country B imposing the tariff.

Using Figure 7, calculate the revenue received by the government as a result of the imposition of the tariff in Country B.

Using an international trade diagram, explain the outcome on US producers of the introduction of a tariff on imports from China (paragraph [2]).

Define the term tariff indicated in bold in the text (paragraph [2]).

Define the term trade war indicated in bold in the text (paragraph [3]).

Using information from the text/data and your knowledge of economics, discuss the arguments for and against the trade protection measures imposed by the US on China.

Using an international trade diagram, explain how “increased quotas for the export of rice to Japan” will affect the price of rice in Japan (paragraph [2]).

State two functions of the World Trade Organization (WTO) (paragraph [1]).

Using information from the text/data and your knowledge of economics, evaluate the view that free trade is beneficial to Japan’s economy.

Define the term absolute advantage indicated in bold in the text (paragraph [3]).

Define the term quotas indicated in bold in the text (paragraph [2]).

Using information from the text/data and your knowledge of economics, discuss the view that the US should impose tariffs on the imported shrimp.

With reference to the diagram, explain why the welfare loss from the imposition of the quota is likely to be greater than the welfare loss resulting from a tariff of $2 per kg.

Identify the quantity of bananas which would be purchased in Country A per month following the imposition of the quota.

Calculate the change in revenue earned by domestic producers of bananas in Country A as a result of the quota.

Using an international trade diagram, explain how US tariffs could affect the export of Chinese steel and aluminium to the US (paragraph [2]).

Define the term trade war indicated in bold in the text (paragraph [1])

Using a demand and supply diagram, explain how reduced tariffs on “imported factors of production” would affect the price of Chinese goods (paragraph [7]).

Using information from the text/data and your knowledge of economics, evaluate the impacts of free trade measures on China’s economy.

State two functions of the World Trade Organization (WTO) (paragraph [1]).

Using an AD/AS diagram, explain how removing “the import quota will reduce the inflation rate in the Philippines” (paragraph [5]).

Using information from the text/data and your knowledge of economics, evaluate the impact on the economy in the Philippines of removing the rice quota.

Define the term free trade indicated in bold in the text (paragraph [1]).

Define the term tariff indicated in bold in the text (paragraph 2).

Using an international trade diagram, explain the impact on the Kenyan government of implementing a tariff on steel imports.

Using information from the text/data and your knowledge of economics, evaluate the claim that trade protection measures will support economic growth in Kenya.

A new government in Alpha decides to abolish the price ceiling. Instead, it opens the rice market to imports. The world supply of rice is perfectly elastic; any quantity can be bought for $3 per kilogram.

Using the diagram, calculate the import expenditures on rice.

Define the term comparative advantage.

Explain two limitations of the theory of comparative advantage.

Alpha’s government decides to impose a $2 tariff on each kilogram of imported rice. Using the diagram, calculate the government revenue that results from the imposition of the tariff.

Using the diagram, calculate the opportunity cost of producing one tonne of bananas in Country A.

Define the term comparative advantage indicated in bold in the text (paragraph [5]).

Using information from the text/data and your knowledge of economics, evaluate the economic impacts of trade protection in the South African corn market.

Plot and label the world cotton supply curve that San Marcus now faces on Figure 3.

State two functions of the WTO.

With reference to your answer to question (b)(ii), calculate the change in the cost of financing the $8 per kg subsidy to the government of San Marcus following the decision to import cotton from the world market.

Outline the reason why Country X should specialize in the production of apples and Country Y should specialize in the production of bananas.

Using information from the text/data and your knowledge of economics, evaluate the effect of the tariff on drywall on different stakeholders.

Using a tariff diagram, explain the effect of the “preliminary tariffs” on Canadian consumers of drywall (paragraph [3]).

State one administrative barrier that Country Z could use in order to restrict imports.

Using a demand and supply diagram, explain how the “imposition of the preliminary tariff” may have affected the market for new homes built in Canada (paragraph [4]).

Define the term dumping indicated in bold in the text (paragraph [2]).

Using an international trade diagram, explain the effect of a tariff on the imports of tinplate steel (paragraph [1]).

Using a supply and demand diagram and data from the text, explain how a “disequilibrium in the domestic US tinplate steel market” would occur if there were no imports (paragraph [3]).

Using information from the text/data and your knowledge of economics, discuss possible economic impacts of the tariff on tinplate steel.

Sketch and label a diagram to illustrate comparative advantage between Country X and Country Y on Figure 4.

Figure 4

Using information from the text/data and your knowledge of economics, evaluate the possible consequences of the trade agreement between Japan and the EU (JEEPA).

Define the term quota indicated in bold in the text (paragraph [4]).

Using an international trade diagram, explain the likely impact of Japan “removing the current 30 % tariff” on the level of cheddar cheese imports. (paragraph [4]).