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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