Question :
181.RefertoFigure9-16.TheareaC+D+E+Frepresents
a.thedecreaseinconsumersurpluscausedbythetariff.
b.thedecreaseintotalsurpluscausedbythetariff.
c.thedeadweightlossofthetariffm : 1262615
181.RefertoFigure9-16.TheareaC+D+E+Frepresents
a.thedecreaseinconsumersurpluscausedbythetariff.
b.thedecreaseintotalsurpluscausedbythetariff.
c.thedeadweightlossofthetariffminusgovernmentrevenueraisedbythetariff.
d.thedeadweightlossofthetariffplusgovernmentrevenueraisedbythetariff.
182.Aquotais
a.ataxplacedonimports.
b.a limitonthequantity ofimports.
c.ataxonexportstoothercountries.
d.anexcessofexportsoverimports.
183.Bothtariffsandimportquotas
a.increasethequantityofimportsandraisethedomesticpriceofthegood.
b.increasethequantityofimportsandlowerthedomesticpriceofthegood.
c.decreasethequantityofimportsandraisethedomesticpriceofthegood.
d.decreasethequantityofimportsandlowerthedomesticpriceofthegood.
184.Amajordifferencebetweentariffsandimportquotasisthat
a.tariffscreatedeadweightlosses,butimportquotasdonot.
b.tariffshelpdomesticconsumers,andimportquotashelpdomesticproducers.
c.tariffsraiserevenueforthegovernment,butimportquotascreatesurplusforthosewhogetthelicensestoimport.
d.Alloftheabovearecorrect.
185.Tariffsandquotasaredifferentinthesensethat
a.tariffscausedeadweightlosses,whilequotasdonotcausedeadweightlosses.
b.tariffsraiserevenueforthegovernment,whilequotasdonotraiserevenueforthegovernment.
c.tariffsenhancethewell-beingofdomesticconsumers,whilequotasdiminishthewell-beingofdomesticconsumers.
d.tariffsenhancethewell-beingofdomesticproducers,whilequotasdiminishthewell-beingofdomesticproducers.
186.Importquotasandtariffsproducesimilarresults.Whichofthefollowingisnotoneofthoseresults?
a.Thedomesticpriceofthegoodincreases.
b.Consumersurplusofdomesticconsumersincreases.
c.Producersurplusofdomesticproducersincreases.
d.Adeadweightlossisexperiencedbythedomesticcountry.
187.Importquotasandtariffsproducesomecommonresults.Whichofthefollowingisnotoneofthosecommonresults?
a.Totalsurplusinthedomesticcountryfalls.
b.Producersurplusinthedomesticcountryincreases.
c.Thedomesticcountryexperiencesadeadweightloss.
d.Revenueisraisedforthedomesticgovernment.
188.Animportquota
a.ispreferabletoatariffsinceanimportquotadoesnotcreateadeadweightloss.
b.isataxonimportedgoods.
c.reducesthewelfareofdomesticconsumers.
d.reducesthewelfareofdomesticproducers.
189.ThenationofAquiloniahasdecidedtoenditspolicyofnottradingwiththerestoftheworld.Whenitendsitstraderestrictions,itdiscoversthatitisimportingincense,exportingsteel,andneitherimportingnorexportingrugs.WecanconcludethatAquilonia’snewfreetradepolicyhas
a.increasedconsumersurplusandproducersurplusintheincensemarket.
b.increasedconsumersurplusinthesteelmarketandleftproducersurplusintherugmarketunchanged.
c.decreasedconsumersurplusinboththesteelandrugmarkets.
d.decreasedconsumersurplusinthesteelmarketandincreasedtotalsurplusintheincensemarket.
190.ThenationofAquiloniahasdecidedtoenditspolicyofnottradingwiththerestoftheworld.Whenitendsitstraderestrictions,itdiscoversthatitisimportingrice,exportingsteel,andneitherimportingnorexportingTVs.WecanconcludethatproducersurplusinAquiloniaisnow
a.higherinthesteelmarket,lowerinthericemarket,andunchangedintheTVmarket.
b.higherinthericeandsteelmarkets,andunchangedintheTVmarket.
c.lowerinthericeandTVmarkets,andhigherinthesteelmarket.
d.lowerinthericeandsteelmarkets,andthesameintheTVmarket.