Question : 31) Relative to free trade, when a tariff imposed in : 1241650

31) Relative to free trade, when a tariff is imposed in a market for an imported good,

A) the consumer surplus in that market increases.

B) the producer surplus in that market decreases.

C) the total surplus in that market decreases.

D) tariff revenue decreases.

E) deadweight loss decreases.

32) Of the following, who gains because of tariffs and why?

A) domestic producers of protected goods because they can sell at a higher price

B) domestic buyers because they can be sure of buying high-quality products

C) foreign producers because they earn more total revenue

D) foreign government because they gain more revenue

E) domestic buyers because they pay a lower price

33) Relative to free trade, domestic producers of a good are ________ off with a tariff because of the ________ .

A) better; higher price and greater quantity sold

B) better; higher price and smaller quantity sold

C) better; lower price and greater quantity sold

D) worse; lower price and smaller quantity sold

E) worse; higher price and greater quantity sold

34) If the United States imposes a tariff on foreign chocolate, how are U.S. producers of chocolate affected?

A) The quantity of chocolate they sell decreases because U.S. consumption of chocolate decreases.

B) The quantity of chocolate they produce increases.

C) The price at which they sell their chocolate falls.

D) They are harmed because foreign exporters of chocolate increase their supply in response to the higher price.

E) They are unaffected because the quota applies to foreign producers, not to U.S. producers.

35) If the United States imposes a tariff on foreign chocolate, how are foreign producers of chocolate affected?

A) Their supply increases because they have to pay the tariff.

B) They export less to the United States.

C) They earn more profit because their chocolate sells for a higher price.

D) Their supply is unaffected because the quota must be met by U.S. producers.

E) The tariff has no effect on foreign producers because U.S. consumers must pay the higher price.

36) The above figure shows the U.S. market for replacement cell phone batteries. When there is no international trade, the equilibrium price is ________ per battery and when there is international trade the equilibrium price is ________ per battery.

A) $16; $14

B) $14; $12

C) $12; $14

D) $12; $16

E) $16; $12

37) The above figure shows the U.S. market for replacement cell phone batteries. With free international trade, the United States

A) exports 300,000 batteries.

B) imports 400,000 batteries.

C) imports 500,000 batteries.

D) imports 800,000 batteries.

E) exports 700,000 batteries.

38) The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to ________ and the price U.S. consumers pay ________ compared to the price paid when there was free trade.

A) $2; decreases

B) $14; decreases

C) $2; increases

D) $12; increases

E) $14; increases

39) The above figure shows the U.S. market for replacement cell phone batteries. With free trade, the United States imports ________ batteries and once the tariff illustrated in the figure is imposed, the United States imports ________ batteries.

A) 900,000; 700,000

B) 800,000; 400,000

C) 300,000; 100,000

D) 700,000; 300,000

E) 900,000; 100,000

40) The above figure shows the U.S. market for replacement cell phone batteries. With free trade, U.S. production is equal to ________ batteries per year. When a $2 tariff is in place, U.S. production is equal to ________ batteries per year.

A) 100,000; 300,000

B) 100,000; 500,000

C) 300,000; 100,000

D) 300,000; 500,000

E) 900,000; 700,000