ECON 426 Lecture Notes - Codex Corbeiensis Ii

Because the United States has placed quotas on textile and apparel imports for the last 30years, certain countries, such as China and India, have been able export to the United States only as much clothing as their respective quotas permit. One effect of this policy was spreading textile and apparel manufacture around the world and preventing any one nation from dominating the world market. As a result, many developing countries, such as Vietnam, Cambodia, and Honduras, were able to enter the market and provide much‑needed jobs for local workers. The rules, however, changed: As of January 1, 2005, quotas on U.S. textile imports were eliminated, permitting U.S. companies to import textile supplies from any country they choose. In your opinion, what effect will the new U.S. policy have on each of the following groups:

a. U.S. firms that outsource the manufacture of their apparel

b. Textile manufacturers and workers in:

•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; China

•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; Indonesia

•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; Mexico

•&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ;&νβσπ; United States

c. American consumers

12. What will the following print ? public class Test public static void main (String[] args) boolean bl = true; boolean b2 = false; boolean b3 = true; if ((bl && b2) || (b2 && b3) || b2) System.out.print("ok"); if ((bl && b2) || (b2 && b3) 11 (bl || b2)) System.out.println("dokey"); (A) No output is produced (B) ok (C) dokey (D) Compile-time error (E) ok dokey

4. Elastic, inelastic, and unit-elastic demand.

The following graph shows the demand for a good.

Price; Quantity

W: 140 & 6

X: 90 & 21

Y: 70 & 27

Z: 20 & 42

For each of the regions, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic.

True or false: The value of the price elasticity of demand is not equal to the slope of the demand curve.