$10.$ An export subsidy will have what effect on the global price and quantity of the subsidized good?

a$)$ Price will increase and quantity will decrease

b$)$ Price will decrease and quantity will increase

c$)$ Price and quantity will both increase

d$)$ Price and quantity will both decrease

$$

Explanation: An export subsidy leads to an increase in the supply of the subsidized good in the global market, causing a decrease in the global price. However, this decrease in price is offset by the subsidy paid to domestic producers, which increases their supply and decreases the supply of other producers in the global market. As a result, the global price of the subsidized good increases, and the quantity of the good produced and exported decreases.

$$

$11.$ An import tariff will have what effect on the domestic price and quantity of the imported good?

a$)$ Price will increase and quantity will decrease

b$)$ Price will decrease and quantity will increase

c$)$ Price and quantity will both increase

d$)$ Price and quantity will both decrease

$$

Explanation: An import tariff is a tax on imported goods, which increases the cost of production for the imported good. This leads to a decrease in the supply of the imported good in the domestic market, causing the price to increase, and a decrease in the quantity of the imported good consumed.

$$

$12.$ An import tariff will have what effect on the global price and quantity of the imported good?

a$)$ Price will increase and quantity will decrease

b$)$ Price will decrease and quantity will increase

c$)$ Price and quantity will both increase

d$)$ Price and quantity will both decrease

$$

Explanation: An import tariff leads to a decrease in the demand for the imported good in the domestic market, causing a decrease in the global price. However, this decrease in price is offset by the decrease in the quantity demanded in the domestic market, leading to an increase in the quantity supplied and a decrease in the quantity demanded in the global market. As a result, the global price of the imported good decreases, and the quantity of the good produced and consumed globally increases.

$$

$13.$ Assume that labor is the only factor of production and that wages in the United States equal $$20$ per hour while wages in Japan are $$10$ per hour. Production costs would be lower in the United States as compared to Japan if $$

A$)$ U$.$S$.$ labor productivity equaled $40$ units per hour and Japan's $15$ units per hour. $$

B$)$ U$.$S$.$ productivity equaled $30$ units per hour whereas Japan's was $20.$

C$)$U$.$S$.$ labor productivity equaled $20$ and Japan's $30.$

D$)$U$.$S$.$ labor productivity equaled $15$ and Japan's $25$ units per hour. $$

E$)$None of the above. $$

$$

$14.$ In the $2-$factor, $2$ good Heckscher$-$Ohlin model, an influx of workers from across the border would $$

A$)$ move the point of production along the production possibility curve. $$

B$)$ shift the production possibility curve outward, and increase the production of both goods. $$

C$)$ shift the production possibility curve outward and decrease the production of the labor$-$intensive product. $$

D$)$ shift the production possibility curve outward and decrease the production of the capital$-$intensive product.$$

E$)$ None of the above. $$

$$

$15.$ External economies can lead to what effect on a country's production and trade?

a$)$ Increase in production and decrease in trade

b$)$ Increase in production and increase in trade

c$)$ Decrease in production and decrease in trade

d$)$ Decrease in production and increase in trade

Explanation: External economies can increase the productivity and efficiency of a country's industries, leading to an increase in production. As the country's industries become more competitive, it can increase its trade with other countries, both in terms of exports and imports. Therefore, external economies can have a positive effect on a country's production and trade.