ch.9 SA
Refer to Figure 9-10. Producer surplus plus consumer surplus in this market before trade is _______________.
A + B + C
Refer to Figure 9-10. Producer surplus plus consumer surplus in this market after trade is _______________.
A + B + C + D
Refer to Figure 9-10. Producer surplus in this market after trade would be _____________.
C
Refer to Figure 9-13. Producer surplus with free trade would be _______________.
G
A tariff is a tax placed on _______________.
imported goods that raises the domestic price above the world price
When a country allows free trade, ________________.
the domestic price will equal the world price
Refer to Figure 9-13. Consumer surplus with free trade would be _____________.
A + B + C + D + E + F
Refer to Figure 9-9. The quantity of air conditioners imported into Kenya is ______________.
Q2 - Q1
Refer to Scenario 9-1. If trade in tomatoes is allowed, U.S. consumers of tomatoes ___________.
will be worse off
Refer to Scenario 9-1. If trade in tomatoes is allowed, total well-being in the United States ________________.
will increase
Refer to Figure 9-14. The loss in total surplus when the quota is imposed would be _______________.
$200
Refer to Figure 9-5. The amount of revenue collected by the government from the tariff is _____________.
$400
Refer to Figure 9-1. With free trade, producer surplus would be ________________.
$472.50
Turkey is an importer of goose down pillows. The world price of these pillows is $50. Turkey imposes a $7 tariff on pillows. Turkey is a price-taker in the pillow market. As a result of the tariff Turkey's price of pillows will be _____________.
$57 and the quantity of pillows purchased will decrease
Refer to Figure 9-4. With free trade, total surplus would increase by _____________.
$75
Refer to Figure 9-14. As a result of the quota consumer surplus falls by
$900
Refer to Figure 9-15. After the quota, deadweight loss would be equal to ______________.
D + F
A tariff is ______________.
a tax on imported goods
Countries usually impose restrictions on free foreign trade to protect ____________.
domestic producers
Refer to Figure 9-4. If this country allows free trade in wagons, consumers will _____________.
gain by $240
The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes _____________.
harm the United States as a whole because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue
Refer to Figure 9-1. This country ________________.
has a comparative advantage in baskets
A country has a comparative advantage in a product if _____________.
its domestic price is below the world price
Refer to Figure 9-4. If this country allows free trade in wagons, producers will ______________.
lose by $165
Refer to Figure 9-5. Imposing a tariff on carnations _______________.
reduces imports by 200