Chapter 9 Quiz
refer to figure 9-11 the change in total surplus in this market because of trade is
D and this area represents a gain in total surplus
if Freedonia changes its laws to allow international trade in software and the world price is higher than its domestic price then it must be the case that
consumer surplus decreases and producer surplus increases
refer to figure 9-6 the size of the tariff on roses is
1
refer to figure 9-17 with trade and a tariff consumer surplus is
1,204 and producer surplus is 392
refer to figure 9-17 with trade and a tariff total surplus is
1,704
refer to figure 9-6 the amount of deadweight loss caused by the tariff equals
100
refer to figure 9-6 the amount of revenue collected by the government from the tariff is
200
refer to figure 9-17 when the country moves from free trade and a tariff consumer surplus
decrease by 576 and producer surplus increase by 192
refer to figure 9-1 with trade Guatemala will
export 22 united of coffee
assume for Colombia that the domestic price of coffee without international trade is higher than the world price of coffee. This suggest that
other countries have a comparative advantage over Colombia in producing coffee
refer to figure 9-14 when the country for which the figure is drawn allows international trade in crude oil
producer surplus changes from the area C to the area B + C +D
the north america free trade agreement
reduced trade restrictions among Canada, Mexico, and the US
a tax on an imported good is called a
tariff
import quotas and tariffs produce similar results. which of the following is not one of those results A. the domestic price of the good increases B. a deadweight loss is experienced by the domestic country C. producer surplus of domestic producers increases D/ consumer surplus of domestic consumers increases
D
refer to figure 9-1 from the figure it is apparent that
Guatemala as a comparative advantage in producing coffee, relative to the rest of the world