Home Exercise No.

2
The following figures relate to questions 4-1
Below is information on local supply and demand of a particular product
(Let continuity and monotony of the fields);

Question 1
If the tax will be 12 unit
A. Government tax receipts will be 384.
B. Consumer prices will rise by 6.
C . The price the producer gets dropped on 12.
D. None of these answers is correct or is there more than one answer
Question 2
If the subsidy will be given a 20 unit
A. The cost of government subsidy will be in 1000.
B. Consumer prices fell by 10.
C . The price the producer receives) including a subsidy (exceeding 20.
D. None of these answers is correct or is there more than one answer
Now let the economy opened up foreign trade.
In overseas market to buy or sell any amount of price 10
(1 $ = 6 )Transportation costs are at the expense of exports of domestic
manufacturer, the amount of 4 = per kilo and transportation costs in imports
are at the expense of the domestic consumer, the amount 8 unit. Inland
transportation costs are negligible.
Question 3
If the local manufacturer will be given a subsidy by 12 per unit produced,
A. The amount offered will be 37 units
B. The amount offered will be 9 units
C . The imported amount will be 7 units
D. None of these answers is correct or is there more than one answer
Question 4
If the local manufacturer will be given a subsidy / premium 16 per unit
exported,
A. The amount offered will be 28 kg
B. The imported quantity would be 12 kg
C . The imported quantity would be 16 kg
D. There is no correct answer above.

The following figures relate to questions 7-5

Below is information on local supply and demand of a particular product (Let
continuity and monotony of fields)

Question 5
Place the subsidy given 8 unit. Now, it was decided to increase the subsidy to
20 unit.
Hence the
A. The increase in the subsidy cost the government a stronger increase in
revenue producers.
B. Manufacturers revenue growth weaker growth in consumer spending.
C . The cost of government subsidy will increase by more than 3
D. None of these answers is correct or is there more than one answer
Additional data questions 6-7: Back to the terms of the beginning and place, from
now on, because open economy with foreign trade
In overseas market to buy or sell any amount to $ 11 price envoy
(It is known that 1 $ = 6)
Transportation expenses are on account of exports of domestic manufacturer, the
sum of 3 unit, and transportation costs in imports
Both at the expense of domestic consumers, NIS 4 unit. Costs of transportation
in the country are negligible
Question 6:
If the local manufacturer will be given a subsidy by 23 per unit produced,
A. The imported amount will be reduced by 14 units
B. The amount offered will be 53 units
C . The imported quantity would be 70 units
D. There is no right answer or there is more than one correct answers above.
Question 7:
Ignoring the change in question 6, if the government imposes customs unit 8
imported and give
15 subsidy per unit exported
A. The manufacturer will provide more than two thirds of its products in the
domestic market and less than 1/3 of its products exported abroad.
B. General customs receipts higher than 80.
C . Will not export at all.
D. There is no correct answer to the above, or that more than one answer.