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if trade is not allowed producer surplus is the area

C

the gains from trade correspond ton the area

D

The deadweight loss from the tariff is the area

D+F

government revenue from the tariff is the area

E

if a tariff is placed on this good, producer surplus is there area

G+C

if free trade is allowed consumer surplus is the area

a

Which of the following statement about a tariff is true?

a tariff increases producer surplus, decreases consumer surplus, increases revenue to the government and reduces total surplus

if a tariff os placed on this good consumer surplus is the area

a+B

if trade is not allowed consumer surplus is the area

a+b

if free trade is allowed consumer surplus is the area

a+b+C+D+e+F

if free trade is allowed a country will export a good if the world price is

above the before trade domestic price of the good

if free trade is allowed producer surplus is the area

b+c+d

suppose the world price is below the before trade domestic price for a good if a country allows free trade in this good

consumers will gain and producers will lose

a tariff raises the price of a good deuces the domestic quantity demanded increased the domestic quantity imported

false

an import quota that restricts imports to the same degree as an equivalent tariff raises the same amount of government revenue as the the equivalent tariff even if the government gives away the import licenses

false

countries should import products for which they have a comparative advantage in production

false

if free trade is allowed and a country exports a good, domestic producers of the good are worse off and domestic consumers of the good are better off when compared to the before trade equilibrium

false

if the world price for a good exceeds a country's before-trade domestic price for that good the country should import that good

false

tariffs tend ti benefit consumers

false

trade makes everyone better off

false

which of the following is not employed as an argument in support of trade restrictions?

free trade harms both domestic producers and domestic consumers and therefore reduces total surplus

because producers are better able to organize than consumers are we would expect there to be political pressure to create

import restrictions

Market participants that cannot influence the price so they view the price as given

price takers

a tax on goods produced abroad and sold domestically

tariff

which of the following statements about free trade between the united States and candid is true

the United States will export pencils and canada willed port pens

if a worker in Brazil can produce 6 oranges or 2 apples in an hour while a worker in Mexico can produce 2 oranges or 1 apple in an hour then Brazil should export oranges and Mexico should export apples

true

if free trade is allowed and a country exports a good the gains of domestic producers exceed the losses of domestic consumers and total surplus rises

true

if free tree trade is allowed and a country imports imports wheat, domestic buyers of bread are better off and domestic farmers are worse off when compared to the before-trade domestic equilibrium

true

if the foreign country country subsidizes its export industries its taxpayers are paying to improve the welfare of consumers in the importing countries

true

opponents of the free trade often argue that free trade destroys domestic jobs

true

tariffs cause deadweight losses because they raise of the imported good and cause overproductions

true

trade can make everyone better off if the winners from trade compensate the losers from trade

true

trade increases the economic well-being of a nation because the gains of the winners exceed the losses of the losers

true

the price of a good that prevails in the world market for that good

world price