ch.9 SA
Refer to Figure 9-10. Producer surplus plus consumer surplus in this market before trade is _______________. Figure 9-10.png A + B A + B + C A + B + C + D B + C + D
A + B + C
Refer to Figure 9-10. Producer surplus plus consumer surplus in this market after trade is _______________. Figure 9-10.png A + B A + B + C A + B + C + D B + C + D
A + B + C + D
Refer to Figure 9-10. Producer surplus in this market after trade would be _____________. Figure 9-10.png C C + B A + B + D B + C + D
C
Refer to Figure 9-13. Producer surplus with free trade would be _______________. Figure 9-13.png G C + G A + C + G A + B + C + G
G
A tariff is ______________. a tax on imported goods a tax on exported goods a limit on imported goods a tax on luxuries
a tax on imported goods
Refer to Figure 9-14. The loss in total surplus when the quota is imposed would be _______________. Figure 9-14.png $100 $200 $400 $500
$200
Refer to Figure 9-13. Consumer surplus with free trade would be _____________. Figure 9-13.png A A + B A + C + G A + B + C + D + E + F
A + B + C + D + E + F
Refer to Figure 9-9. The quantity of air conditioners imported into Kenya is ______________. Figure 9-9.png Q1 Q2 Q2 - Q1 Q0
Q2 - Q1
Refer to Figure 9-1. This country ________________. Figure 9-1.png has a comparative advantage in baskets should import baskets cannot be competitive in the world market would be better off if the world price for baskets and its pre-trade price were equal
has a comparative advantage in baskets
Refer to Figure 9-5. Imposing a tariff on carnations _______________. Figure 9-5.png increases imports by 100 increases imports by 200 reduces imports by 200 reduces imports by 400
reduces imports by 200
Refer to Scenario 9-1. If trade in tomatoes is allowed, U.S. consumers of tomatoes ___________. Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $600 per ton. The U.S. is a price-taker in the tomatoes market. will be better off will be worse off will be unaffected could be helped or hurt
will be worse off
Refer to Scenario 9-1. If trade in tomatoes is allowed, total well-being in the United States ________________. Scenario 9-1 The before-trade domestic price of tomatoes in the United States is $500 per ton. The world price of tomatoes is $600 per ton. The U.S. is a price-taker in the tomatoes market. will increase will decrease will be unaffected could increase or decrease
will increase
Refer to Figure 9-5. The amount of revenue collected by the government from the tariff is _____________. Figure 9-5.png $200 $400 $500 $600
$400
Refer to Figure 9-1. With free trade, producer surplus would be ________________. Figure 9-1.png $80 $210 $245.50 $472.50
$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 _____________. $50 and the quantity of pillows purchased will decrease $57 and the quantity of pillows purchased will decrease $50 and the quantity of pillows purchased will increase $57 and the quantity of pillows purchased will increase
$57 and the quantity of pillows purchased will decrease
Refer to Figure 9-4. With free trade, total surplus would increase by _____________. Figure 9-4.png $60 $75 $135 $210
$75
Refer to Figure 9-14. As a result of the quota consumer surplus falls by _______________. Figure 9-14.png $200 $300 $500 $900
$900
Refer to Figure 9-15. After the quota, deadweight loss would be equal to ______________. Figure 9-15.png E B D + F B + D + E + F
D + F
Countries usually impose restrictions on free foreign trade to protect ____________. foreign producers foreign consumers domestic producers domestic consumers
domestic producers
Refer to Figure 9-4. If this country allows free trade in wagons, consumers will _____________. Figure 9-4.png lose by $75 lose by $240 gain by $240 gain by $75
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 _____________. benefit the United States as a whole, because they generate revenue for the government. In addition, because the goods are priced below cost, the taxes do not harm domestic consumers benefit the United States as a whole, because they generate revenue for the government and increase producer surplus 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 harm the United States as a whole because they reduce the sum of consumer and producer surplus by an amount that exceeds the increase in government revenue
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
A tariff is a tax placed on _______________. exported goods that lowers the domestic price below the world price exported goods that keeps the domestic price the same as the world price imported goods that lowers the domestic price below the world price imported goods that raises the domestic price above the world price
imported goods that raises the domestic price above the world price
A country has a comparative advantage in a product if _____________. it can produce a product more efficiently its domestic price is below the world price its domestic price is above the world price it can benefit from importing the product
its domestic price is below the world price
Refer to Figure 9-4. If this country allows free trade in wagons, producers will ______________. Figure 9-4.png lose by $210 lose by $165 gain by $45 gain by $210
lose by $165
When a country allows free trade, ________________. the domestic price will be greater than the world price the domestic price will be lower than the world price the domestic price will equal the world price it does not matter what the world price is; the domestic price is the prevailing price
the domestic price will equal the world price
