Assume a country’s Gini coefficient is rising. Would you expect this country’s Lorenz curve to move closer to the 45 degree line?

1. Assume a country’s Gini coefficient is rising. Would you expect this country’s Lorenz curve to move closer to the 45 degree line? Why or why not?2. Is it possible for a country’s “net exports” to be a negative number? Explain.3. Suppose you raise tariffs on a product whose demand is highly price elastic. Will this generate a greater tax revenue? Why or why not?4. Does an increase in “nominal GDP” necessarily cause the “real GDP” to rise? Explain.5. Did the mercantilists have a “dynamic” view of the global economy? Explain.6. Does the Samuelson-Stolper theorem suggest that trade benefits the owners of scarce resources? Explain. 7. Does the “theory of overlapping demands” imply that rich countries should mostly trade with poor countries? Explain.8. Do tariffs raise the “consumer surplus”? Why or why not?9. Which of the following indicates a net welfare loss: revenue effect, re-distributive effect, protective effect? Explain your choice.10. Suppose South Korea subsidizes its automobiles sold in the U.S. Which of the following groups will benefit from this “export subsidy”: South Korean tax payers, American automobile manufacturers, American consumers purchasing South Korean automobiles? Explain your choice.11. Does the “tariff-rate quota” impose a uniform tariff on all imported units? explain.