- Assume a country’s Gini coefficient is rising. Would you expect this country’s Lorenz curve to move closer to
the 45 degree line? Why or why not? - Is it possible for a country’s “net exports” to be a negative number? Explain.
- Suppose you raise tariffs on a product whose demand is highly price elastic. Will this generate a greater tax
revenue? Why or why not? - Does an increase in “nominal GDP” necessarily cause the “real GDP” to rise? Explain.
- Did the mercantilists have a “dynamic” view of the global economy? Explain.
- Does the Samuelson-Stolper theorem suggest that trade benefits the owners of scarce resources? Explain.
- Does the “theory of overlapping demands” imply that rich countries should mostly trade with poor countries?
Explain. - Do tariffs raise the “consumer surplus”? Why or why not?
- Which of the following indicates a net welfare loss: revenue effect, re-distributive effect, protective effect?
Explain your choice. - Suppose South Korea subsidizes its automobiles sold in the U.S. Which of the following groups will benefit
from this “export subsidy”: South Korean tax payers, American automobile manufacturers, American
consumers purchasing South Korean automobiles? Explain your choice. - Does the “tariff-rate quota” impose a uniform tariff on all imported units? explain
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