ANSWER KEYS TO THE MIDTERM EXAM TEST

Test 1
Q1. Multiple choice questions.
1.C 11.A
2.C 12.C
3.B 13.D
4.D 14.B
5.D 15.B
6.C 16.A
7.B 17.D
8.B 18.B
9.D 19.A
10.B 20.B

Q2.
a. 50 thousand unit
b. CS= 1400 thousands dollar
PS= 60 thousands dollar
Tax revenue= 100 thousand dollar
c. In the case of no import, the tax must be equal to equilibrium price and
can be calculated by using taxation formula.
Test 2
Q1. Multiple choice questions.
1.B 11.B
2.D 12.A
3.D 13.C
4.D 14.A
5.D 15.B
6.D 16.D
7.C 17.B
8.B 18.D
9.D 19.A
10.D 20.C

Q2.
a. Vietnam has comparative advantage in steel
Laos has comparative advantage in wood

b. The benefit is 240 working hours.