Quiz 9
the deadweight loss created by the tariff is represented by the area
D + F
total surplus in this market before trade is
A + B + C
which of the following not an advantage of a multilateral approach to free trade over a unilateral approach?
a multilateral approach requires the agreement of two or more nations
when a tariff is imposed in the market, domestic producers
gain $150 producer surplus
the tariff
increases producer surplus by the area C, decreases consumer surplus by the area C + D + E + F, and decreases total surplus by the area D + F.
With trade and without a tariff,
the domestic price is equal to the world price
When a country allows trade and becomes an exporter of silk, which of the following is not a consequence?
the gains of domestic producers of silk exceed the losses of domestic consumers of silk
the size of the tariff on roses is
$1
without trade, the equilibrium price of roses is
$4 and the equilibrium quantity is 300.
suppose the world price of cardboard is $139 and international trade is allowed. Then Boxland's consumers demand
102 tons of cardboard and Boxland's producers supply 357 tons of cardboard
total surplus in this market after trade is
A + B + C + D
when the tariff is imposed, domestic consumers
lose surplus of $450
suppose the world price of a television is $300. before paraguay allowed trade in televisions, the price of a television there was $350. once paraguay began allowing trade in televisions with other countries, paraguay began
importing televisions and the price of a television in Paraguay decreased to $300.
government revenue raised by tariff is represented by the area
E
assume, for india, that the domestic price of copper without international trade is lower than the world price of copper. this suggests that, in the production of copper,
India has a comparative advantage over the other countries and India will export copper
suppose the world price of cardboard is $139. then, relative to the no-trade situation, international trade in cardboard
harms Boxlandian consumers by $7,803.00 and benefits Boxlandia producers by $14,305.50
