ECN 221 Chapter 9 HW

Refer to Figure 9-6. The amount of revenue collected by the government from the tariff is

$200

Refer to Figure 9-6. The size of the tariff on roses is

$1

Refer to Figure 9-6. The amount of deadweight loss caused by the tariff equals

$100

Refer to Scenario 9-2. Suppose the world price of cardboard is $45 and international trade is allowed. Then Boxland's consumers demand

110 tons of cardboard and Boxland's producers supply 75 tons of cardboard.

Refer to Scenario 9-2. Suppose the world price of cardboard is $60 and international trade is allowed. Then Boxland's consumers demand

80 tons of cardboard and Boxland's producers supply 120 tons of cardboard.

A tariff is a

tax on an imported good.

Domestic producers of a good become better off, and domestic consumers of a good become worse off, when a country begins allowing international trade in that good and

the World price exceeds the domestic price of the good that prevailed before international trade was allowed.

Refer to Figure 9-6. With trade and without a tariff,

the domestic price is equal to the world price.

A country has a comparative advantage in a product if the world price is

higher than that country's domestic price without trade.

A tariff

raises the domestic price of the imported good above the world price.

If the United States imports televisions and the U.S. government imposes a tariff on televisions, then

All of the above are correct.

Which of the following tools and concepts is useful in the analysis of international trade?

All of the above are correct.

Refer to Scenario 9-2. Suppose the world price of cardboard is $60. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland?

It decreases consumer surplus, increases producer surplus, and increases total surplus.

Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard produces which of the following results for Boxland?

It increases consumer surplus, decreases producer surplus, and increases total surplus.

Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then Boxland's gains from international trade in cardboard amount to

$122.50

Refer to Scenario 9-2. Suppose the world price of cardboard is $60. Then Boxland's gains from international trade in cardboard amount to

$160

Refer to Figure 9-6. Without trade, the equilibrium price of roses is

$4 and the equilibrium quantity is 300.

Refer to Scenario 9-2. If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is

$52 and the equilibrium quantity of cardboard is 96 tons.

Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard

benefits Boxlandian consumers by $721 and harms Boxlandian producers by $598.50.

Refer to Figure 9-6. The imposition of a tariff on roses

decreases the number of roses imported by 200.

Refer to Scenario 9-2. Suppose the world price of cardboard is $60. Then, if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,

domestic producers of cardboard become better off and domestic consumers of cardboard become worse off.

Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then, if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,

domestic producers of cardboard become worse off and domestic consumers of cardboard become better off.

Refer to Figure 9-6. When a tariff is imposed in the market, domestic producers

gain $150 of producer surplus.

Refer to Scenario 9-2. Suppose the world price of cardboard is $60. Then, relative to the no-trade situation, international trade in cardboard

harms Boxlandian consumers by $704 and benefits Boxlandian producers by $864.

For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should

import copper.

Refer to Figure 9-6. Before the tariff is imposed, this country

imports 400 roses.

Refer to Figure 9-6. When the tariff is imposed, domestic consumers

lose by $450.

Assume, for Mexico, that the domestic price of beets without international trade is higher than the world price of beets. This suggests that, in the production of beets,

other countries have a comparative advantage over Mexico and Mexico will import beets.

A major difference between tariffs and import quotas is that

tariffs raise revenue for the government, but import quotas create surplus for those who get the licenses to import.

Suppose Brazil has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over Brazil in producing almonds. If trade in almonds is allowed, Brazil

will export almonds.