Chapter 9 Quiz

refer to figure 9-11 the change in total surplus in this market because of trade is

D and this area represents a gain in total surplus

if Freedonia changes its laws to allow international trade in software and the world price is higher than its domestic price then it must be the case that

consumer surplus decreases and producer surplus increases

refer to figure 9-6 the size of the tariff on roses is

1

refer to figure 9-17 with trade and a tariff consumer surplus is

1,204 and producer surplus is 392

refer to figure 9-17 with trade and a tariff total surplus is

1,704

refer to figure 9-6 the amount of deadweight loss caused by the tariff equals

100

refer to figure 9-6 the amount of revenue collected by the government from the tariff is

200

refer to figure 9-17 when the country moves from free trade and a tariff consumer surplus

decrease by 576 and producer surplus increase by 192

refer to figure 9-1 with trade Guatemala will

export 22 united of coffee

assume for Colombia that the domestic price of coffee without international trade is higher than the world price of coffee. This suggest that

other countries have a comparative advantage over Colombia in producing coffee

refer to figure 9-14 when the country for which the figure is drawn allows international trade in crude oil

producer surplus changes from the area C to the area B + C +D

the north america free trade agreement

reduced trade restrictions among Canada, Mexico, and the US

a tax on an imported good is called a

tariff

import quotas and tariffs produce similar results. which of the following is not one of those results A. the domestic price of the good increases B. a deadweight loss is experienced by the domestic country C. producer surplus of domestic producers increases D/ consumer surplus of domestic consumers increases

D

refer to figure 9-1 from the figure it is apparent that

Guatemala as a comparative advantage in producing coffee, relative to the rest of the world