Micro quiz 9

Refer to figure 9-3 The amount of revenue collected by the government from the tariff is

$200

Refer to figure 9-2 With trade, producer surplus is

$3,000

Refer to figure 9-5 Producer surplus in this market after trade is

A. C.

Refer to figure 3 The deadweight loss created by the tariff is represented by the area

D + F

The "unfair-competition" argument might be cited by an American who believes that

The French governments subsidies to French farmers justify restrictions on Americans imports of French agricultural imports

Refer to figure 2 From the figure it is apparent that

Uganda has a comparative advantage in producing coffee, relative to the rest of the world.

What is the fundamental basis for trade among nations

comparative advantage

If the Korean steel industry subsidizes the steel that it sells to the United States, the

harm done to U.S. steel producers is less than the benefit that accrues to U.S. consumers of steel.

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.

Refer to figure 9-2 With trade, this country

imports 320 tricycles.

If the United States threatens to impose a tariff on Colombian coffee if Colombia does not remove agricultural subsidies, the United States will be

worse off if Colombia doesn't remove the subsidies in response to the threat.

Import quotas and tariffs produce some common results. Which of the following is not one of those common results?

Equal revenue is always raised for the domestic government.

The general agreement on tariffs and trade (GATT) was initiated in response to

High tariffs imposed during the Great Depression of the 1930s

The world price of a ton of steel is $650. Before russia allowed trade in steel, the price of a ton of steel there was $1000. Once russia allowed trade in steel with other countries, russia began

Importing steel and the price per ton in russia decreased to $650

Refer to figure 3 The tariff

Increases producer surplus by the area c and decreases consumer surplus by the area C+D+E+F

The infant-industry argument

is based on the belief that protecting industries when they are young will pay off later

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

other countries have a comparative advantage over Brazil and Brazil will import apples.

The North American free trade agreement

reduced trade restrictions among Canada, Mexico and the United States.

When the nation of Worldova allows trade and becomes an exporter of silk,

residents of Worldova who produce silk become better off; residents of Worldova who buy silk become worse off; and the economic well-being of Worldova rises.

A tax on an imported good is called a

tariff