Homework #17 Micro-Economics
Figure 9-6. The size of the tariff on roses is...
$1
Figure 9-6. The amount of deadweight loss caused by the tariff equals...
$100
Figure 9-22. With free trade, consumer surplus is...
$108,000 and producer surplus is $12,000
Figure 9-22. Suppose the government imposes a tariff of $20 per unit. With trade and a tariff, total surplus is...
$114,000
Figure 9-22. With free trade, total surplus is...
$120,000
Figure 9-6. The amount of revenue collected by the government from the tariff is...
$200
Figure 9-22. Suppose the government imposes a tariff of $20 per unit. The deadweight loss caused by the tariff is...
$6,000
Figure 9-1. In the absence of trade, total surplus in Guatemala is represented by the area...
A+B+C+D+F
Figure 9-1. From the figure it is apparent that...
Guatemala has a comparative advantage in producing coffee, relative to the rest of the world
A quota is...
a limit on the quantity of imports
When, in our analysis of the gains and losses from international trade, we assume that a country is small, we are in effect assuming that the country...
cannot affect world prices by trading with other countries
What is the fundamental basis for trade among nations?
comparative advantage
Figure 9-1. When trade in coffee is allowed, consumer surplus in Guatemala...
decrease by the area B+D
Figure 9-6. The imposition of a tariff on roses...
decreases the number of roses imported by 200
For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should...
import copper
Figure 9-4. With trade, Nicaragua...
imports 250 calculators
When a country that imports a particular good imposes a tariff on that good...
producer surplus increases and total surplus decreases in the market for that good
When the nation of Worldova allows trade and becomes an exporter of silk,...
residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova rises
A tax on an imported good is called a...
tariff
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,...
the country will be an importer of the good
The price of a good that prevails in a world market is called...
world price
Figure 9-1. With trade, Guatemala will...
export 22 units of coffee
Figure 9-6. When a tariff is imposed in the market, domestic producers...
gain $150 of producer surplus
When a country allows trade and becomes an importer of a good,...
domestic producers become worse off, and domestic consumers become better off
Figure 9-6. Before the tariff is imposed, this country...
imports 400 roses
Figure 9-1. When trade in coffee is allowed, producer surplus in Guatemala...
increase by the area B+D+G
Figure 9-6. When the tariff is imposed, domestic consumers...
lose by $450
Figure 9-22. Suppose the government imposes a tariff of $20 per unit. With trade and a tariff, consumer surplus is...
$75,000 and producer surplus is $27,000
Figure 9-1. The change in total surplus in Nicaragua because of trade is...
$625, and this is an increase in total surplus
Figure 9-1. In the absence of trade, total surplus in Guatemalan coffee market amounts to...
1,650
Figure 9-1. With trade, total surplus in the Guatemalan coffee market amounts to...
1,870
Denmark is an importer of computer chips and add a $5 per chip tariff to the world price of $12 per chip. Suppose Denmark removes the tariff. Which of the following outcomes is not possible?
Mors Danish-produced chips are sold in Denmark
Assume the nation of Teeveeland does not trade with the rest of the world. By comparing the world price of televisions to the price of televisions in Teeveeland, we can determine whether...
Teeveeland has a comparative advantage in producing televisions
Chile is an imported of computer chips, taking the world price of $12 per chip as given. Suppose Chile imposes a $7 tariff on chips. Which of the following outcomes is possible?
The price of chips in Chile increases to $19; the quantity of Chilean-produced chips increases; and the quantity of chips imported by Chile decreases
Trade enhances the economic well-being of a nation in the sense that...
trade results in an increase in total surplus
