Part I: True or False (1 point/question) Determine: withoutjustifying your answer, whether these statements are true {T} or false (F). Type your answer directly in the "True (T) / False (F)" column True (T) / False (F) 1 When a country opens up to international trade to become an importer of a good, domestic ot a good, domestic consumers 0t that good benefit while producers are penalized. producers are penalized. 2 Taxes cause deadweight losses because they prevent economic agents from economic agents from making certain gains from trade. Part II: Multiple Choice Questions (2 points/question) Choose the answer you think is best for each of the following questions by putting an "X" between the parentheses.to U: The shortterm supply curve of a perfectly competitive rm is: horizontal. most likely decreasing. determined by factors external to the company. the portion of its marginal cost curve above average variable cost. soars\" the nth part of the supply curve of the industry comprising n rms Answer: [ ] 26. 1When the conditions of a perfectly competitive industry are such that the rms can no longer cover their production costs: a. the rms will do longterm economic losses. b. rms will make shortterm economic losses which will be exactly offset by longterm economic prots c. some rms will exit the market= causing the price to rise until rms remaining in the market can cover their production costs. d. all firms will leave the market since consumers do not want to pay the price that would allow rms to cover their production costs. e. all the rms will lower their production in order to push up the price. 27'. If a tariff were imposed on steel imports into Canada, it would: increase the total surplus in the Canadian steel market decrease the total surplus in the Canadian steel market increase both the total surplus of consumers and foreign steel exporters 999'?\" increase the standard of living of Canadians. to the detriment of the standard of living of the inhabitants of the exporting countries e. none of the above Answer: [ ] 23. 'When a country opens up to international trade and becomes an importer of a good: the economic well being of all the citizens of the country improves the economic well being of all the citizens of the country deteriorates the gains of the producers exceed the losses of the consumers the gains of the consumers exceed the losses producers 939.09% all of these answers are wrong Answer: [ ] 29. A bakery sells its breads in a competitive market at $6 each. It currently employs 15 workers at a salary of 89 per hour. The marginal product of the 15th worker is: a. twothirds of a loaf per hour b. l loaf per hour c. 1.5 loaves per hour d. 6 loaves per hour e. Impossible to know without additional information Answer: [ ] 30. Compared to perfect competition, the oligopoly tends to: a. overproduce and sell too expensively b. underproduce and sell too expensively c. overproduce and sell too cheaply d. underproduce and sell too cheaply e. underproduce in the short term and then overproduce in the long term Answer: [ ]