Question : 1) An export tariff will ________ producer surplus, ________ consumer : 1303536

 

 

 

1) An export tariff will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; decrease; increase; have an ambiguous effect on

B) increase; decrease; decrease; decrease

C) increase; decrease; have no effect on; have an ambiguous effect on

D) increase; decrease; have no effect on; decrease

E) increase; increase; decrease; have an ambiguous effect on

 

2) An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; decrease; increase; have an ambiguous effect on

B) increase; decrease; decrease; decrease

C) increase; decrease; have no effect on; have an ambiguous effect on

D) increase; decrease; have no effect on; decrease

E) increase; increase; decrease; have an ambiguous effect on

 

 

3) An import quota will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; decrease; increase; have an ambiguous effect on

B) increase; decrease; decrease; decrease

C) increase; decrease; have no effect on; have an ambiguous effect on

D) increase; decrease; have no effect on; decrease

E) increase; increase; decrease; have an ambiguous effect on

 

 

4) A voluntary export restraint will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; decrease; increase; have an ambiguous effect on

B) increase; decrease; decrease; decrease

C) increase; decrease; have no effect on; have an ambiguous effect on

D) increase; decrease; have no effect on; decrease

E) increase; increase; decrease; have an ambiguous effect on

 

 

9.5   Appendix to Chapter 9: Tariffs and Import Quotas in the Presence of Monopoly

 

1) If an import-competing firm is imperfectly competitive, then under free trade an export tariff will ________ domestic market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; have no effect on; decrease; increase; decrease

B) decrease; decrease; increase; decrease; have no effect on

C) increase; have no effect on; increase; decrease; increase

D) decrease; increase; decrease; increase; decrease

E) have no effect on; have no effect on; decrease; increase; decrease

 

2) If an import-competing firm is imperfectly competitive, than under free trade an import quota will ________ domestic market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; increase; decrease; have no effect on; decrease

B) decrease; decrease; increase; decrease; have no effect on

C) increase; have no effect on; decrease; increase; decrease

D) decrease; increase; decrease; increase; decrease

E) have no effect on; have no effect on; decrease; increase; decrease

 

 

3) Suppose an import-competing firm is imperfectly competitive. Replacement of an export tariff with an import quota that yields the same level of imports will ________ market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A) increase; increase; decrease; decrease; decrease

B) have no effect on; have no effect on; have no effect on; decrease; decrease

C) increase; have no effect on; decrease; decrease; increase

D) increase; increase; increase; decrease; have an ambiguous effect on

E) decrease; decrease; increase; decrease; increase

 

 

4) If an import-competing firm is the only domestic producer of a good, then a transition from autarky to free trade will ________ domestic price, ________ producer surplus, ________ consumer surplus, and ________ overall domestic national welfare.

A) decrease; decrease; increase; increase

B) increase; increase; increase; increase

C) decrease; decrease; decrease; decrease

D) increase; increase; decrease; decrease

E) increase; increase; decrease; increase

 

 

 

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