221.SupposeFranceimposesatariffonwineof3eurosperbottle.Ifgovernmentrevenuefromthetariffamountsto30millioneurosperyearandifthequantityofwinesuppliedbyFrenchwineproducers,withthetariff,is8millionbottlesperyear,thenwecanconcludethat
a.thequantityofwinedemandedbyFrance,withthetariff,is18millionbottlesperyear.
b.thequantityofwinedemandedbyFrance,withoutthetariff,wouldbe24millionbottlesperyear.
c.theamountofthedeadweightlossis24millioneurosperyear.
d.thetariffcausesFrenchbuyersofwinetopay2eurosmoreperbottlethantheywouldpaywithoutthetariff.
222.Foracountrythatisconsideringtheadoptionofeitheratarifforanimportquotaonaparticulargood,animportantdifferenceisthat
a.animportquotahasnoeffectonconsumersurplus,whileatariffdecreasesconsumersurplus.
b.animportquotahasnoeffectonproducersurplus,whileatariffdecreasesproducersurplus.
c.atariffraisestotalsurplus,whileanimportquotadoesnot.
d.atariffraisesrevenueforthatcountry’sgovernment,whileanimportquotadoesnot.
223.Foranycountrythatallowsfreetrade,
a.domesticquantitydemandedisequaltodomesticquantitysuppliedattheworldprice.
b.domesticquantitydemandedisgreaterthandomesticquantitysuppliedattheworldprice.
c.bothproducersandconsumersinthatcountrygainwhendomesticproductsareexported,butbothgroupslosewhenforeignproductsareimported.
d.thedomesticpriceisequaltotheworldprice.
Figure9-19.Onthediagrambelow,QrepresentsthequantityoftextilesandPrepresentsthepriceoftextiles.
224.RefertoFigure9-19.Withfreetrade,thecountryforwhichthefigureisdrawnwill
a.export30unitsoftextiles.
b.export50unitsoftextiles.
c.import30unitsoftextiles.
d.import50unitsoftextiles.
225.RefertoFigure9-19.Withfreetrade,consumersurplusinthetextilemarketamountsto
a.$210.
b.$320.
c.$405.
d.$910.
226.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanexporterofaparticulargood,
a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood.
b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood.
c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood.
d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.
227.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanexporterofaparticulargood,
a.producersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood.
b.producersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood.
c.producersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood.
d.producersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.
228.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanimporterofaparticulargood,
a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood.
b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood.
c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood.
d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.
229.Whenacountryabandonsano-tradepolicy,adoptsafree-tradepolicy,andbecomesanimporterofaparticulargood,
a.producersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood.
b.producersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood.
c.producersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood.
d.producersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.
230.Whenacountrythatexportedaparticulargoodabandonsafree-tradepolicyandadoptsano-tradepolicy,
a.consumersurplusincreasesandtotalsurplusincreasesinthemarketforthatgood.
b.consumersurplusincreasesandtotalsurplusdecreasesinthemarketforthatgood.
c.consumersurplusdecreasesandtotalsurplusincreasesinthemarketforthatgood.
d.consumersurplusdecreasesandtotalsurplusdecreasesinthemarketforthatgood.
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