Economics Problems: T-shirts, GDP, CPI

For Instructor’s Use only

• The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submissionwill NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover pagewill NOT be accepted.

Below, you are provided with the demand and supply curves for t-shirts and the world price of a t-shirt. You will use this information to identify whether the country imports or exports t-shirts. You will also examine the impact of a tariff on the amount of consumer and producer surplus that results in this market.

1. Suppose that the world price of a t-shirt is $2 Does this country import or export t-shirts? How many?
2. Suppose that this country engages in trad 
3. Calculate the amountof consumer surplus that results in this market.
4. Calculate the amountof producer surplus that results in this market.
5. Suppose that the government imposes a $10 import tariff on t-shir
6. How many t-shirts do domestic consumers purchase after this import tariff is imposed?
7. How many t-shirts do domestic suppliers sell after this import tariff is imposed?
8. How many t-shirts does this county import?
9. Calculate the amount of consumer surplus that results in this market.
10. Calculate the amount of producer surplus that results in this market.
11. Calculate the amount of government tax revenue generated by the import tarif
12. Calculate the amount of deadweight loss that results from the imposition of the tarif

Below, you are provided with three years of data on the quantities that are produced of two goods and the market price of each. You will use this data to calculate Nominal GDP and Real GDP.

Bananas and Mango are produced in Philippines. Many other final goods and services are produced in Philippines, but we will assume that Bananas and Mango are the only two final goods produced in this country. The table below provides the number of bananas and mango that are produced in Philippines in three different years. The table also provides the price of a banana and the price of a mango in each year.

• Whatis the value of Nominal GDP in Philippines in 2015, 2016 and 2017?
• Treating 2015as the base year, calculate the value of Real GDP in Philippines in 2015, 2016 and 2017?

Below, you are provided with two years of data on the quantities of two goods that the average, urban family of four consumes and the market price of each. You will use these data to calculate the Consumer Price Index (CPI) and inflation rate.

Cheese and Chocolate are two goods that are consumed in Holland. Many other final goods and services are consumed in Holland, but for simplicity, we will assume that Cheese and Chocolate are the only two final goods consumed in the country. The table below provides the quantity of Cheese and Chocolate that are consumed by the average, urban family of four in Holland in two different years. The table also provides the price of a Cheese and the price of chocolate in each year.

Suppose that 2016 is the base year. 

• Calculate the CPI in 2016 and 2017.Round your answer to the nearest one-hundredt
• Calculate the 2017inflation rat Round your answer to the nearest one-tenth of one percent.