Quiz 9

the deadweight loss created by the tariff is represented by the area

D + F

total surplus in this market before trade is

A + B + C

which of the following not an advantage of a multilateral approach to free trade over a unilateral approach?

a multilateral approach requires the agreement of two or more nations

when a tariff is imposed in the market, domestic producers

gain $150 producer surplus

the tariff

increases producer surplus by the area C, decreases consumer surplus by the area C + D + E + F, and decreases total surplus by the area D + F.

With trade and without a tariff,

the domestic price is equal to the world price

When a country allows trade and becomes an exporter of silk, which of the following is not a consequence?

the gains of domestic producers of silk exceed the losses of domestic consumers of silk

the size of the tariff on roses is

$1

without trade, the equilibrium price of roses is

$4 and the equilibrium quantity is 300.

suppose the world price of cardboard is $139 and international trade is allowed. Then Boxland's consumers demand

102 tons of cardboard and Boxland's producers supply 357 tons of cardboard

total surplus in this market after trade is

A + B + C + D

when the tariff is imposed, domestic consumers

lose surplus of $450

suppose the world price of a television is $300. before paraguay allowed trade in televisions, the price of a television there was $350. once paraguay began allowing trade in televisions with other countries, paraguay began

importing televisions and the price of a television in Paraguay decreased to $300.

government revenue raised by tariff is represented by the area

E

assume, for india, that the domestic price of copper without international trade is lower than the world price of copper. this suggests that, in the production of copper,

India has a comparative advantage over the other countries and India will export copper

suppose the world price of cardboard is $139. then, relative to the no-trade situation, international trade in cardboard

harms Boxlandian consumers by $7,803.00 and benefits Boxlandia producers by $14,305.50