Question : 11) Suppose the world price of widgets $5 each. If : 1241648

11) Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country’s consumers pay for widgets?

A) $10

B) $7

C) $5

D) $3

E) A price that is greater than $5 and less than $7

12) Which of the following chain of events occurs when a tariff is imposed on a good?

A) Domestic prices rise, shifting the domestic supply curve rightward.

B) Domestic prices fall, shifting the demand curve rightward, and consumers buy more of the good.

C) Domestic prices fall, decreasing the domestic quantity supplied and increasing the quantity demanded.

D) Domestic prices rise, decreasing the quantity demanded and increasing the domestic quantity supplied.

E) Domestic prices rise, shifting the demand curve leftward and the domestic supply curve rightward.

13) The imposition of tariffs on Korean steel has led to ________ in imports of Korean steel to the United States and ________ the price of steel in the United States.

A) no change; raised

B) a decrease; raised

C) an increase; lowered

D) a decrease; no change in

E) an increase; raised

14) As a result of U.S. tariffs imposed on wool from New Zealand, the quantity of this wool that is imported has

A) decreased.

B) increased a little.

C) not changed.

D) increased a lot.

E) changed but whether it has increased or decreased is ambiguous.

15) Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.

A) rise; an increase

B) rise; a decrease

C) fall; an increase

D) fall; a decrease

E) rise; no change

16) As a result of U.S. tariffs on fishnets produced in other nations, the quantity of fishnets purchased in the United States has

A) not been affected.

B) increased.

C) decreased but not to zero.

D) fallen to zero.

E) probably changed, but whether it has increased or decreased is ambiguous.

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

A) The price they pay for chocolate rises.

B) Their demand for chocolate increases because the U.S. production chocolate increases.

C) The quantity they consume is unchanged.

D) The price they pay for chocolate falls but they consume less chocolate because less is imported.

E) The price they pay for chocolate falls and they consume more chocolate.

18) If the United States imposes a tariff on a good, then

A) domestic consumption of the good decreases.

B) foreign consumption of the good decreases.

C) foreign production of the good increases.

D) domestic production of the good decreases.

E) the government makes less revenue than it would have gained if it imposed a quota.

19) When the United States imposes a tariff on an imported good, the

A) price of the good in the United States falls.

B) quantity of the good purchased in the United States decreases.

C) quantity of the good produced in the United States decreases.

D) outcome becomes more efficient.

E) amount imported increases.

20) U.S. tariffs on Canadian lumber have led to ________ production of lumber within the United States.

A) no change in

B) an increase in

C) the elimination of

D) a decrease in

E) making illegal the