Question :
51) Refer to Figure 34-1. At the price P0, the : 1384531
51) Refer to Figure 34-1. At the price P0, the quantity of refrigerators supplied to the Canadian market by domestic Canadian producers is
A) Q1.
B) Q2.
C) Q3.
D) Q4.
E) Q5.
52) Refer to Figure 34-1. At the price P0, the quantity of refrigerators imported into the Canadian market is
A) Q3Q5.
B) Q2Q4.
C) Q2Q5.
D) Q2Q3.
E) Q1Q5.
53) Refer to Figure 34-1. Suppose that P0 is the world price. If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P0 to P1, the consequence would be that
A) both domestic production and domestic consumption would decrease by equal amounts.
B) domestic production will increase from Q1 to Q2 and domestic consumption will fall from Q5 to Q4.
C) domestic production will increase from Q1 to Q3 and domestic consumption will fall from Q5 to Q3.
D) domestic production will exceed domestic consumption.
E) both domestic production and domestic consumption would increase by equal amounts.
54) Refer to Figure 34-1. Suppose that P0 is the world price. If Canada imposes a tariff causing the price of refrigerators in Canada to rise from P0 to P1, the Canadian government will collect tariff revenues equal to
A) the original price P0, multiplied by the original quantity of refrigerators imported into Canada, Q1Q5.
B) (P1 – P0) multiplied by the tariff-induced quantity of refrigerators imported into Canada, Q1Q5.
C) (P1 – P0) multiplied by the tariff-induced quantity of refrigerators imported into Canada, Q2Q4.
D) the new price, P1, multiplied by the total quantity of refrigerators purchased in Canada, Q4.
E) the new price, P1, multiplied by the total quantity of refrigerators purchased in Canada, Q2.
55) Refer to Figure 34-1. Suppose that P0 is the world price and Canada imports refrigerators. Suppose the Canadian government then responds to political pressure from domestic refrigerator manufacturers and imposes a tariff high enough that all imports are eliminated. As a result of this tariff, the price and quantity of refrigerators in Canada will be, respectively,
A) P0 and Q1.
B) P0 and Q5.
C) P1 and Q2.
D) P1 and Q3.
E) P2 and Q3.
56) Refer to Figure 34-1, and assume the world price is P0. The Canadian government now imposes an import quota of the amount Q2Q4. The result would be that the price in Canada would:
A) stay at P0 and consumption would stay at Q5.
B) stay at P0 and consumption would rise to Q3.
C) rise to P2 and consumption would decrease to Q5.
D) rise to P2 and consumption would decrease to Q4.
E) rise to P1 and consumption would decrease to Q4.
57) Refer to Figure 34-1. If we compare the effect of an import tariff with the effect of an import quota, both of which cause the Canadian price to increase by the same amount, the major difference between the two policies is:
A) the quota does not directly reduce the quantity whereas the tariff does.
B) the tariff raises revenue for the government whereas the quota benefits foreign producers.
C) the tariff raises revenue for the protected producers whereas the quota benefits the government.
D) the tariff does not directly affect the price consumers pay whereas the quota does.
E) the tariff directly affects the price consumers pay whereas the quota has neither direct nor indirect price effects.
58) Refer to Figure 34-2. If Canada were to engage in no international trade in denim jeans, then the quantity consumed and produced in Canada would be
A) Q1
B) Q2
C) Q3
D) Q4
E) Q5
59) Refer to Figure 34-2. In the presence of free international trade, Canada’s consumption of denim jeans will be the quantity
A) Q1
B) Q2
C) Q3
D) Q4
E) Q5
60) Refer to Figure 34-2. In the presence of free international trade, Canada’s production will be at the quantity:
A) Q1
B) Q2
C) Q3
D) Q4
E) Q5
